1. Section 1

1.1. Lesson 1

Mathematics 20-3 Module 2

Section 1: Simple and Compound Interest

 

Lesson 1: Simple Interest

 

Focus

 

In this photo, vines appear to be growing from coins and bills.

Hemera/Thinkstock

You may have heard the old saying “Money doesn’t grow on trees!” But your money can grow! When you put your hard-earned money into a savings account, buy a guaranteed investment certificate (GIC), or invest in regular-interest savings bonds, you earn interest. This is true since a bank, a business, or a government is effectively renting your money for their use.

 

The reverse is also true—a bank or business will charge you interest if they loan you money to make a purchase or pay a bill.

 

In this lesson you will examine one form of interest called simple interest. This is interest calculated on an amount of money that does not include interest earned.

 

Lesson Question

 

In this lesson you will investigate the following question:

  • How can you solve financial problems involving simple interest?
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 1 Assignment (Save a copy of your lesson assignment to your course folder now.)

  • the Project Connection

In this course you may come across Self-Check questions, Try This questions, and other activities that may or may not be assessed.

 

Remember that these questions and activities provide you with the practice and feedback that you need to successfully complete this course. You should respond to all the questions and place those answers in your course folder. Your teacher may wish to view the work that you have stored in your course folder to check on your progress and to see if you require assistance.

 

Materials and Equipment
  • calculator
Time

 

This lesson has been designed to take 150 minutes; however, it may take more or less time depending on how well you are able to understand the lesson concepts. It is important that you progress at your own pace based on your learning needs.