1. Section 1

1.11. Lesson 2

Mathematics 20-3 Module 2

Section 1: Simple and Compound Interest

 

Lesson 2: Compound Interest

 

Focus

 

In this photo an athlete is stretching her leg muscles.

Wendy Hope/Stockbyte/Thinkstock

Training for physical endurance in a race is a long-term process. Saving money through investing is also a long-term process. Most people do not become rich overnight. When training for a race, an athlete will focus on increasing strength and power. Similarly, using interest to increase your savings is using the power of interest.

 

In Lesson 1 you looked at the power of simple interest. In this lesson you will look at an even bigger powerhouse: compound interest.

 

Lesson Question

 

In this lesson you will investigate the following question:

  • How are financial problems involving compound interest solved?
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 2 Assignment (Save a copy of your lesson assignment to your course folder now.)

  • the Project Connection
Materials and Equipment
  • calculator