Calculate & Compare Simple & Compound Interest Earnings
T.i.P.S.
Students will calculate simple interest and compound interest using various rates and lengths of time as well as compare the two types of interest on earnings.
Example
Todd deposited $1,600 in an account that earns 7% simple interest every year. His brother Adam deposited $1,550 in an account that earns 7.5% interest compounded annually. The deposits were made on the same day, and no additional money will be deposited or withdrawn from the accounts. Who will have the most money in their account and how much more at the end of 4 years?
Digital Tools
Click on the following links for interactive games.
Resources
Click on the following links for more information.
Federal Reserve System’s Resources for Educators
Teacher Online Resource Center
Money Smart Train-the-Trainer Videos
TEKS
Supporting Standard 8.12 Personal financial literacy. The student applies mathematical process standards to develop an economic way of thinking and problem solving useful in one's life as a knowledgeable consumer and investor. The student is expected to:(D) calculate and compare simple interest and compound interest earnings
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