Students solve simple interest problems while visiting a bank.
After completing this tutorial, you will be able to complete the following:
In this Activity Object, students use the simple interest formula to solve percent problems involving investments and loans. Be sure to review the following pre-requisite concepts with the class before starting the Activity Object.
Simple Interest is the most basic kind of interest. When someone lends money to someone else, the borrower usually pays a fee to the lender. This fee is the simple interest. The amount of simple interest paid each year is a fixed percentage of the amount borrowed or lent at the start. It is just the amount of money paid on a loan. In general, it is charged for borrowing money for short periods of time.
The following key vocabulary terms will be used throughout this Activity Object:
|Approximate Time||15 Minutes|
|Pre-requisite Concepts||formula for simple interest, interest rate, multiplication of decimals, percent and decimal equivalents, principal, simple interest, solving equations|
|Type of Tutorial||Problem Solving & Reasoning|
|Key Vocabulary||problems, rate, simple interest|