WHERE TO INVEST MONEY
1. Warm-up: Review converting decimals to percent. (The student will need to convert decimals to percent in investment calculations.)
2. Motivate the Lesson: Ask students if they have ever invested money. Have their parents invested money? What types of investment options are available (savings accounts, loans, CD, stocks, etc.)
Ask the students how they can calculate the amount of money they can earn from an investment. Introduce the simple interest formula I = prt. Demonstrate how to use the simple interest formula for ONE investment.
An example would be: Find the simple interest earned when you invest $10,000 at 5% for 1 year.
i = prt
i = (10,000)(0.05)(1)
i = $500
Ask the students how they can use this formula with TWO investment options.
3. Proceed with the “Question of the Day”. Explain that you are going to solve real world money problems.
4. Verify that the students understand how to define the variable X and construct the i=prt tables by having them try the second sample on their own.
5. Have the students complete the “Investment Options Worksheet” for homework.
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