1. Topic

Simple and Compound Interest 


2. Content

PreAlgebra
Key Vocabulary: Simple Interest, Compound Interest, Principal, Interest
Rate, semiannually. 


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, TI30 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. 

