Your learners will get lots of practice calculating simple and compound interest by the end of this lesson. Simple explanations and examples lead learners through the concepts and steps of calculating simple and compound interest problems.
Extend this activity by having learners research (shop) for something they want to buy (car, boat, home, guitar, horse, etc.). With no money down they must borrow money from a bank to pay for the item. Finally, have them share with the class their loan, principal, interest rate, total interest, payment schedule, time to pay it off, and ultimately the total balance they will pay. Organizing this information in an excel spreadsheet is a valuable lesson and a great tool to use in preparing and presenting their findings.
- Lots of practice problems
- Answer key provided