1. Topic-
 Simple and Compound Interest
2. Content-
 Pre-Algebra Key Vocabulary: Simple Interest, Compound Interest, Principal, Interest Rate, semi-annually.
3. Goals: Aims/Outcomes-
 1. Students will solve simple interest problems using calculators and previous knowledge about formulas. 2. Students will solve compound interest problems using calculators and previous knowledge about formulas.
4. Objectives-
 1. Students will become familiar with how interest is used in everyday life. 2. Students will be able to discuss the differences between simple and compound interest.
5. Materials and Aids-
 SmartBoard with Notebook Software, paper, pencil, Video viewing capabilities for opening video clip, TI-30 calculators (1 per student)
6. Procedures/Methods-

A. Introduction-

 1. The teacher will show the students the "magic of simple interest", using posters of fast food and sneakers. 2. The teacher will assign words to the I = PRT formula. 2. The teacher will show the video that ties into the lesson.

B. Development-

 1. The teacher will show a few examples of how simple interest works, explaining what interest actually means. 2. The teacher will show the same example twice of finding compound interest the long way, and the short way, introducing the formula for compound interest.

C. Practice-

 1. The students will have the opportunity during "Pit Stops" to show that they understand how to solve formulas for both types of interest. 2. The teacher will observe every students work, making sure they fully understand each step of the process. 3.

D. Independent Practice-

 The students will be assigned a homework sheet allowing them an opportunity to work alone.

E. Accommodations (Differentiated Instruction)-

 No accommodations necessary at this time.

F. Checking for understanding-

 Students will return on the next day to go over any issues they have had with the homework problems.

G. Closure-

 If time allows, we will visit a website that has car prices. We will find out how much the car would cost, including interest, for a 5 year loan at 13% interest.

This Lesson Plan is available at (www.teacherjet.com)