       CALCULATE INTEREST 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 consumer money math. # PERCENTAGES AND MONEY: CALCULATING INTEREST

Students will learn to calculate interest.

Teaching Objectives:

• Students will learn to define principal, interest, rate and time.
• Students will use a formula to calculate interest.

Suggested Grades:

Sixth Grade - Seventh Grade - Eighth Grade - Ninth Grade         CALCULATING INTEREST LESSON PLAN

Teaching Materials

• Lesson - Calculating Interest Lesson (see below for printable lesson).

Lesson Excerpt:

How do we calculate interest?
First, let’s learn about some of the terms associated with interest.

What is interest?
Interest is an amount of money that you earn or pay.  Interest is directly connected with how money is used.  If you borrow money, then you are going to be paying interest.  If you are saving money in a savings account, then you are going to be earning interest.

What is principal?
Principal is the amount of money that you start with.  It is the original amount that you are either saving or borrowing.

What is the rate?
The rate is the percentage that the bank is willing to pay you for using your money.  “Using your money” is probably a funny way to think about this, but it is what the bank does.  Because of this, the bank pays you by using a percentage.  It agrees to pay you a percentage back on your money, this is interest earned.
The rate can also be the percentage that you pay.  If you have borrowed money, the rate is the percentage of the borrowed amount that the credit card company or bank will charge you for using their money.

How does time matter?

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

 CALCULATING INTEREST 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 Interest Lesson Plan Rules 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 