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Vocabulary
simple interestcompound interestearnings
Skills
  • calculate (simple interest) #dok1
  • calculate (compound interest) #dok1
  • compare (simple interest and compound interest earnings) #dok2
Learning Targets
  • I can calculate simple interest given principal, rate, and time. #dok1
  • I can calculate compound interest using the appropriate formula. #dok1
  • I can compare the earnings from simple and compound interest in various scenarios. #dok2
Big Ideas
  • Interest can accumulate in different ways, affecting the total earnings or costs over time.
  • Understanding the difference between simple and compound interest enables informed financial decisions.
Essential Questions
  • How are simple interest and compound interest calculated?
  • How does compound interest create greater earnings over time compared to simple interest?
  • What factors affect the amount earned through simple or compound interest?
  • When might someone choose a simple interest loan over a compound interest investment?
  • Why is it important to compare the outcomes of simple and compound interest in real-world situations?