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The Power of Compound InterestName: InterestUsing the link above, calculate the simple interest using one principal amount of your choice and three different interest rates and a five-year period. Use the snipping tool to copy your results to this worksheet.Using the same calculator, complete the following chart:PrincipalAnnual Interest Rate# of YearsInterest EarnedValue$505%1$2007%1$6010%1$404%1Compound InterestUsing the site from above, run the same information using the compound interest calculator. Use the snipping tool to copy your results to this worksheet.V = P (1 + r)NV = Value after N yearsP = Principalr = Annual interest rateN = Number of yearsPrincipalAnnual Interest Rate# of YearsInterest EarnedValue$5012%6$2008%9$1006%12$204%18Rule of 72Use the snipping tool to copy your completed chart for the Rule of 72 from the site linked above.Exit Ticket/AssessmentWhat is simple interest?What is compound interest?What is the Rule of 72?Imagine you receive a graduation gift of $5,000 from a wealthy uncle with a letter that encourages you to save the money for your old age. Also imagine that you are able to average 9% interest on the principal.How much (simple) interest will you receive on your savings after one year?What will the value of your savings be after that one year?What will the value be after 10 years (use the compound interest calculator or formula)?How many years will it take for your savings to double in value?Say you were 18 years of age when you deposited the money and you will withdraw it at 66 years of age. How many times will the money have doubled in value during that time?How much money will be in the account when you withdraw it at 66? ................
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