Lesson Plan: Compound Interest Mathematics • Second Year of Secondary School
This lesson plan includes the objectives, prerequisites, and exclusions of the lesson teaching students how to solve problems involving compound interest.
Objectives
Students will be able to
- recall the formula for calculating compound interest and understand what each of the individual variables represents,
- calculate the amount of interest earned or the total value of an investment after a
given time period, where
- interest is compounded annually,
- interest is compounded at an interval other than 1 year.
- solve associated compound interest problems, such as calculating the minimum time interval at which interest must be compounded in order to reach a certain value.
Prerequisites
Students should already be familiar with
- simple interest,
- exponential growth.
Exclusions
Students will not cover
- logarithms,
- depreciation,
- interest compounded continuously.
