Tyler Read ECUR 325 Lesson plan

Lesson Plan Title: Understanding Compound Interest

Date: February 17th, 2017

Subject: Foundations 30 Grade: 12
Topic: Compound interest Essential Question: Why use
compound interest instead of
Simple Interest

Materials:
-Compound Vs. Simple Interest Worksheet
-Notes

Stage 1- Desired Results you may use student friendly language

What do they need to understand, know, and/or able to do?
They need to have a knowledge of using formulas to calculate a value. They also must
have the knowledge of calculating Simple Interest (This will be taught earlier in the unit)
to compare the two and decide of themselves which is better

Broad Areas of Learning:

Lifelong Learners: This will be hit with this plan is it is teaching them skills that they will
use in the future. This board area of learning is to give the students the ability to achieve
math skills in there day to day life as well as can understand how it relates to other
mathematics, as well as the real world. This is being met extremely well as it is directly
connected to the ever day life of a student.

Sense of Self, Community, and Place: This is the idea of collaboration as well as
application in the environment and there every day lives. Since this lesson place is about
saving it directly connects to the society that we live in and will give students the
knowledge to correctly manage money in everyday life. This will raise their thoughts on
there on Self as well as give knowledge with how the place they live in, as well as their
community, operate.

Engaged Citizens: By learning how to save within this lesson plan they will learn how to
operate and engage in the world in a positive way financially. This will allow the students
to increase the performance of their local communities and environment but also
achieve person financial goals that they set for themselves that will allow them to
achieve a good life through-out their careers

Cross-Curricular Competencies:
Developing Thinking: Since this lesson is about inquiring on interest it allows students to
develop there thinking in the sense that they must come to the conclusion on their own
with some guidance from the teacher. This will allow them to think for themselves and
grow as an academic.
Tyler Read ECUR 325 Lesson plan
Developing Social Responsibility: The ability to manage money and personal finance is
very important in a social aspect. This lesson plan will help grow that sense of social
responsibility within the community.

Outcome(s):
FM30.1: Demonstrate understanding of financial decision making including analysis of:
renting, leasing, buying, credit, compound interest, and investment portfolios

PGP Goals:
2.6: ability to strive for/pursue new knowledge
4.1: knowledge of Saskatchewan curriculum and policy documents and applies this
understanding to plan lessons, units of study and year plans using curriculum outcomes
as outlined by the Saskatchewan Ministry of education

Stage 2- Assessment

Assessment FOR Learning (formative) Assess the students during the learning to help
determine next steps.

The Assessment for learning of this lesson will be a visual component. During the lesson
students, will try and connect simple and compound interest, if the teacher sees this
connection being made through-out the groups then the assessment for learning
component of the lesson will be completed.

Assessment OF Learning (summative) Assess the students after learning to evaluate

what they have learned.

There will be a worksheet that has both simple and compound interest on it as well as
exit slip that the students must perform. This is the Assessment of learning that will
show if the students understand compound interest and if they can compare it to simple
interest.
Tyler Read ECUR 325 Lesson plan

Stage 3- Learning Plan

Motivational/Anticipatory Set (introducing topic while engaging the students)

To get them motivated I am going to ask them how many people would like to have a
million dollars. I will then use the minimum wage of 10.50$ and hour for 40 hr (which is
equal to 420$) and say they put half this money away (210$). Then using simple
interest, we will calculate how long it would take a student to earn a million dollars. Then
we would do the same question but using compound interest, then we would state the
differences.

Main Procedures/Strategies:
Questions to consider:
What is compound Interest?
Compound interest formula?
Why is compound interest better?

The main bulk of the procedure is attached to this lesson plan in the teacher
notes/assignment. These are the important questions that should be answered during
this lesson

(See attached sheet for detailed procedure and strategies for lesson)

Adaptations/Differentiation:
Adaptations and Differentiation within a math class room is always seen. In a typical
math class, you have your high, medium, and lower mathematic students and you must
address that. The examples done in class must be enough that the higher and most of
the medium students understand and must give the lower end students the ability to
understand when talking to them later. This would be the adaptations I would consider
when teaching this class

Another key to differentiation is time spent with students, I would very much 1 on 1
make sure the language I used in class would be clarified with my struggling students as
well as give them more of my time after the group lesson to make sure they understand
to topics that I presented in todays lesson.

The final thing I would consider is if I knew I had a very struggling student I would give
them more time to work on the assignment
Tyler Read ECUR 325 Lesson plan

Closing of lesson:
At the end of the lesson I would explain to them to power of investment and show why
saving now is important. At the beginning of next lesson, I would show an example of
someone putting money in annually and show how putting $210 every week for a long
period will give a lot of money in return.

Personal Reflection: Over all the lesson would be interactive and engaging, I have not
taught this lesson yet so it is hard to exactly tell how it would go but overall I think the
lesson is structured good and would teach the simple aspect of compound interest with
reviewing simple interest.
Tyler Read ECUR 325 Lesson plan

Compound Vs. Simple Interest

On All the following questions calculate using both simple and
compound interest, show your work on a different page

1) Billy deposit is $400 in an account that pays 3% interest what is the

balance of Simons account at the end of two years

2) Jimmy puts in $600, if the interest rate is 4% what is the balance

after 3 years

3) Carl puts in $850 into a account with a interest rate of 2.4%, what is
the time after 5 years

4)Jackie deposits $325 in an account with a interest rate of 4.1%, what

is her account balance after 3 years

5) Cindy deposits 100$ in an account with an interest rate of 2%, what

is her account balance after 1 year

6) Principle: $600, Annual rate 4%. Time: 3 years

7) $975 at 8.2% interest annually for 2 years

8) 135 at 2.3% interest compounded annually for 7 years

Compound Interest Notes (For Board) Review:

Tyler Read ECUR 325 Lesson plan
What is interest?

Interest: The amount of money you pay to

borrow money or the amount of money
you earn from a deposit

What is the Simple interest formula?

I = Prt Review of formula

I=Interest earned

P=starting money (Principle money)

r=the interest rate

t= time in years

Review Question

Mr. Read deposits 800$ into a savings Review Question for students to get their
account that pays 2.2% simple annual math brains going
interest, how much does he make after 24
months

Answer= $26.40

Million Dollar Question

If you put 210$ in a bank with an interest Interesting question, this question is
rate of 2.5% how long would it take to made to have big final numbers (for time)
earn a million dollars. to interest the students

First 1 years

(210) (0.025) (1) =$5.25

(1,000,000-210)/5.25= 190,436.20

Would take you 190,426.20 years.

Compound Interest Notes (For Teacher) Compound Interest Notes (For Board)

This beginning is to make sure they Compound interest

understand and remember simple interest
Year 1
Tyler Read ECUR 325 Lesson plan
(210) (0.025) (1) = 5.25 introduce compound interest and its
formula
Year 2

(215.25) (0.025) (1) = 5.38

Year 3

(220.63) (0.025) (1) = 5.52

Year 4

(226.15) (0.025) (1) = 5.65

Year 5

(231.8) (0.025) (1) = 5.80

Faster way

Compound Interest formula

A= (P+r)t The compound interest formula

A= amount of money in account at the

end of the time period

P= initial money

r= interest rate

t= time period in years

A= 210(1+0.025)2
This is to show them that it does in fact
A=220.63 work as we get the same value as what
we were doing.

Compound Interest Notes (For Teacher)

I will ask them to add the money earned

each year to the calculation in order to Compound Interest Notes (For Board)
get an idea of what compound interest is,
after 5 years I will say this is a lot of Back to the question, how long will it take
work, but there is a easier way and to get a million dollars
Tyler Read ECUR 325 Lesson plan
I will say find out, pick a year, and do the
calculation, stay in whole years

Answer: 210 (1 + 0.025)343

Compound Interest Notes (For Teacher)
A=1,00,163.77
We will finish of the question
The time is 343 years

Which is better, compound interest or

simple interest Guess and check

190,436.20 or 343 years?

Therefore, compound interest is the way

to go.
Ask the question and get a answer

Assignment (Handout)

Compound Vs. Simple Interest

Exit Slip Question

Calculate using both simple and

compound interest Assignment (Handout)

If Mr. Read put 300$ in an account with an

interest rate of 3% how much money
would he have after 1, 2 and 3 years
Exit Slip