TEACHING AND LEARNING BASIC ECONOMICS - WORKSHEET LESSON PLAN ON COMPOUND INTEREST AND TIME VALUE OF MONEY - FINANCE LESSONS

# TIME VALUE OF MONEY - COMPOUND INTEREST

click to go to worksheet

A worksheet for a lesson in the concept of compound interest as it relates to the time value of money (TVM).

 LESSON LEARNED   Compound Interest. Time Value of Money.

 OTHER SKILLS REINFORCED Basic Math Multiplication Percentages

 SUGGESTED GRADE LEVELS   7+ Worksheet is customizable for multiple levels.

 Suggested Money Lesson Plan for this Worksheet With compound interest you receive interest not only on the initial amount, but on the interest as well.  In other words, interest is accumulated on any interest received. For example, if you have \$100 and invest it, and the bank pays 5% interest, then in one year you will have an extra \$5.00 interest, or \$105 in total.  The next year, you will receive \$5.25 in interest.  You get more, because now you receive interest on \$105, instead of on \$100. This is compound interest. Here is a simple formula for calculating compound interest: FV=PV(1+I)N FV = Future Value PV = Present Value I = Interest N = Number of Years

 WORKSHEET Instructions   This worksheet is an introduction to compound interest as it relates to the time value of money.  Students need to fill in the table with the missing values for each of the problems.   This is a random worksheet. You may choose a standard worksheet or customize the worksheet to your teaching needs.   To customize the worksheet, you have several choices (see below).    Make your selections, then press "Get Worksheet."

STANDARD WORKSHEET

Note - requires Full Membership

CUSTOM WORKSHEET

Note - requires Full Membership

This worksheet may be customized with the following settings.

Make any changes you wish, then press "Get Worksheet".

 Number of Questions     Maximum Present Value 100 1000 10000   Maximum Years  1 3 7 10 20 50 100 1000 10000   Show Interest Amount Choose to either show amount of interest or have student fill in.   Include answers?  NOTE: Answers appear on a separate page when printed.       Note - requires Full Membership

 `SUGGESTIONS/COMMENTS` ` ``Click here to recommend an enhancement``for this worksheet or a new worksheet.`` `

You may come back to these worksheet links more than once if your

students are having trouble mastering this concept, since

these are RANDOM worksheets. Every time you choose the

link (or press "refresh" on your browser) a NEW worksheet will be generated.

Back to Basic Finance and Economics