* Download the preview for details! *
This 2-day lesson includes 6 pages of guided notes, a 1-page assignment, and a 2-page assignment.
This lesson works well in both pre-algebra and algebra classes. The goal for part 1 is to understand the process of simple and compound interest, so students will use more of a step-by-step approach. But in part 2 they discover formulas and why we need them.
Students learn about simple and compound interest in the order below. They will:
- Learn important vocabulary
- Solve simple interest problems in two steps (finding the interest amount and then adding it to the original)
- Learn the difference between simple and compound interest
- Solve compound interest problems with a year-by-year approach
- On day 2, discover and use the annual compound interest formula
- Discover and use the annual simple interest formula
* Part 2 works well as an intro into linear vs. exponential relationships
Answer key is included!