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Section 1

1. Section 1

1.32. Lesson 4

Mathematics 20-3 Module 2

Section 1: Simple and Compound Interest

 

Lesson 4: Comparing Simple and Compound Interest and Their Graphs

 

Focus

 

Coins are stacked up in front of financial graphs.

Adam Gault/Digital Vision/Thinkstock

Have you leafed through the financial pages of a newspaper or checked out an online financial newspaper or site? There you will see a variety of graphs indicating trends in markets, interest rates, the dollar, inflation, and the performance of individual stocks.

 

You have likely heard the saying, “A picture is worth a thousand words!” Nowhere is this comment more accurate than when investors want to see, at a glance, how their money is doing. Are the graphs rising or falling, and how steeply?

 

In this lesson you will compare simple and compound interest and graphically track the performance of these types of investments.

 

Lesson Questions

 

In this lesson, you will investigate the following questions:

  • What is the difference in interest earned by simple versus compound interest?
  • How do the graphs of simple and compound interest compare?
Assessment
 

Your assessment for this lesson may include a combination of the following:

  • course folder submissions from the Try This and Share sections of the lesson

  • your contribution to the Mathematics 20-3 Glossary Terms and the Formula Sheet

  • Lesson 4 Assignment (Save a copy of your lesson assignment to your course folder now.)

  • the Project Connection
Materials and Equipment