Length = 1 week
You will learn how to describe, and be able to calculate, simple and compound interest for an investment or a payment. You will begin to understand the cost of borrowing money on interest.
- Explain simple interest
- Use simple interest to calculate loan payments
- Use simple interest to calculate the value of investments
- Explain compound interest
- Use compound interest to calculate total cost of a loan
- Use compound interest to calculate the value of investments
Interest can be a good friend, but it can be an even harsher master. Leanr to understand how interest works so that you will not become the slave, but rather so that you can become the master.
Let your money do the work for you. Students will learn how to use simple interest to calculate the value of investments.
Riddle: I’ll give you $1,000,000 now, or you can choose to receive $10 a day compounding at 50% for 30 days. Lean what compound interest is and how it works.
Hints & Helps
- Learn how to calculate interest on Excel setting up monthly payment options
- Show how by paying more than the minimum payment can quickly lower the total debt