#
COMPOUND INTEREST
**Concept: **Understand what compound interest is, how it is calculated, and appreciate the impact it makes on loans and investments.
Compound
interest is a way of life in our society.
Understanding how it works and how it can be
used effectively to grow your investments is a
critical lesson. Investing early and
accumulating compound interest over the long
term is an excellent and safe way to make your
money work for you.
**Objectives:**
- Know and use compound interest terminology
- Understand when interest is paid
- Understand when interest is earned
- Know and use the formula for calculating simple interest
- Know and use the formula for calculating the total amount of a loan or total value of an investment at the end of a specified term
- Understand how to algebraically manipulate the interest formulas to solve for different variables
**Suggested
Grades:**
Ninth Grade -
Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education
- Business Education |