Students will learn about simple and compounded interest and the rule of 72.
Teaching Objectives:
- Compare simple and compounded interest.
- Calculate simple and compounded interest.
- Apply the Rule of 72 to determine how much time is needed for savings/investments to double.
Standard 5: The student will analyze the costs and benefits of saving and investing.
Suggested Grade Level
6th – 12th Grade
Lesson Excerpt:
The sooner people start saving, the faster their money will grow. Saving for long-term goals is easier when money grows through interest payments. Interest allows savings and investments to grow, even after one stops putting money into the accounts. But, interest rates and types of interest vary greatly from one account to another. Making good choices about saving and investing relies on understanding the differences.
