Simple Interest: Saving for your dream house
Activity Description
This activity is designed to introduce middle school students to the concept of simple interest and its application in financial planning. Through this activity, students will learn how percentages and the simple interest formula can help them make informed decisions about saving and investing.
During the activity, students will explore a scenario where they want to save for the down payment for their dream house. They will learn how to calculate simple interest by applying the formula: Simple Interest = Principal * Rate * Time. Students will also encounter variations of the formula, such as finding the principal or determining the required interest rate when the target amount is given.
The activity encourages students to apply their knowledge of percentages, decimal operations, and problem-solving skills
Learning Objective
The learning objectives are:
- Understand the concept of simple interest and its application in real-world scenarios.
- Apply the concept of percentages to calculate simple interest.
- Develop proficiency in using the formula for calculating simple interest: Simple Interest = Principal * Rate * Time.
- Enhance problem-solving skills by solving practical problems related to saving, investing, and financial planning
- Interpret and analyze the relationship between principal, interest rate, and time to make informed financial decisions.
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