CALCULATING PRINCIPAL

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...

 

 

 

Lesson Printable Materials - Worksheets

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

CALCULATING PRINCIPAL IN MONEY MATTERS
	Calculating Principal in Money Matters Lesson * Printable lesson worksheet and activity.

 

 

 

 

 

 

 

 

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