       CALCULATE PRINCIPAL MONEY LESSON PLAN SELLING ACTIVITIES WORKSHEETS ELEMENTARY SKILLS PROGRAM COURSE BASIC TEACHING LEARNING SAMPLE EXAMPLE HELP WORK STUDENTS TEACHER CLASS EXERCISE ONLINE GUIDE ACTIVITY  Students learn basic money math. # CALCULATING PRINCIPAL

Students will learn to calculate principal, interest, rates and time.

Teaching Objectives:

• Students will review the definitions of principal, interest, rate and time.
• Students will learn to use the formula I = prt to solve for missing quantities.         CALCULATING PRINCIPAL LESSON PLAN

Teaching Materials

• Lesson - Calculating Principal in Money Matters Lesson (see below for printable lesson).

Lesson Excerpt:

What is principal when we are talking about money?
The principal is the amount of money that is borrowed or saved.
If you put \$2500.00 in a savings account, that is the principal amount of money.  It is the amount of money that you start with.

What other terms do we need to know when working with money?

Interest
The first term that we need to be familiar with is interest.  When we have saved money or borrowed money, often there is a question of interest earned or interest that needs to be paid.
When working with interest, we need to keep in mind that the rate and the time determine the interest.  Let’s look at rate.

Rate
The rate is the percentage that a bank pays for money in a savings account.  It is also the percentage that a credit card company or loan company charges for borrowing money.  Rates are often done annually, but sometimes they are calculated monthly as in the case of credit card debt.

Time
Time relates to the time that the money is saved or borrowed for.  It is the amount of time that the money is in use.

We can use a formula to calculate money matters.
Here is the formula that we can use when calculating interest, principal, rate or time.
I = prt
Interest = principal x annual rate x time

Let’s look at an example.

Continued... Print out the teaching lesson pages and exercise worksheets for use with this lesson:

 CALCULATING PRINCIPAL IN MONEY MATTERS Printable lesson worksheet and activity. To teach and learn money skills, personal finance, money management, business, careers, and life skills please go to the Money Instructor home page.  Teaching Money Calculate Principal Lesson Plan Rules Consumer Math Guide Elementary Education Special Education Free Kids Instruct Theme Unit School Classroom Review Graders 4th 5th 6th 7th 8th 9th 10th Grade  © 2002-2010 Money Instructor 