ALTERNATIVE CERTIFICATION PROGRAM

Lesson Plan Format

Teacher_Jennifer Hanson____ Date____06/21/2017___________

Grade Level ____7-9th Grade___ Subject ____Mathematics/Mathematical Models with Applications __

Time Frame ___30-40 Minutes______

Title of Lesson __Simple and Compound Interest_______

TEKS/STAAR Objective: 111.43 (c)(4)(C)

Students will analyze types of savings options involving simple and compound interest and compare relative advantages
of these options.

Anticipatory Set:

Display a picture of a stack of pennies vs a million-dollar bill. Write the following ‘Bell Ringer’ question on the
whiteboard: Would you rather have a million dollars now or take a penny now and double the amount every day for the
next 30 days? The teacher will hand students a blank piece of paper, remind them of the principle of interest from the
previous class, and ask students to write a brief answer.

Instructional Vocabulary:

Simple Interest Principle Sum Nominal Interest Rate

Complex Interest Compounding Frequency Annual Percentage Rate (APR)

Periodic Compounding Continuous Compounding Annual Equivalent Rate (AER)

Materials/Equipment /Technology Needed:

Computer Microsoft PowerPoint Paper signs for demo Scratch Paper Whiteboard Markers

Instructional Activities:

 Guided Practice
1. PowerPoint Presentation - simple and compound interest definitions and formulas
a. Show list of vocabulary terms. Have students discuss examples of the terms for scaffolding with
prior savings/banking knowledge.
b. List simple and compound interest equations. Have students verbally repeat each term in the
equation three times for increased memory of the terms. Remind students that the compound
interest formula is iterative and interest needs to be recalculated per time period. Get students to
repeat this verbally.
2. Class Demonstration - simple vs compound interest.
a. Have student volunteers represent investment terms ‘principal sum’ and ‘interest’. Start with one
volunteer to be the principal sum of $100 and have him hold a sign saying ‘principal sum’ and
‘simple interest’. Say the interest rate is 100% compounded annually and ask how much interest we
will have earned after 1 year. Have student volunteers represent interest (a student per $100
 interest) stand by the principal and a sign for ‘year 1’. Run through how much interest will accrue
for years 2, 3, and 4 in the same fashion. Repeat the demonstration with ‘compound interest’ sign.
b. Review by asking your participant to tell you the difference between Simple and Compound Interest.
3. PowerPoint Presentation continued – example
a. Show example calculations. Have students repeat calculations verbally to confirm slide results table.
 Independent Practice
1. Start assignment on determining how much money can be saved or lost over various periods of time. Have
students work in groups of 2 and circulate around the room to facilitate communication.
2. Students will turn in the assignment at the beginning of next class period.
 Special Populations
ESL/ELL – Emphasize vocabulary and equations in lesson. Allow them to verbally participate in groups and have
another student write their free responses (anything that requires dialogue/explication and not pure
mathematical calculations).
SPED – Emphasize vocabulary and equations in lesson. Allow them to verbally participate in group discussion
and group work. Have another student write their responses during group work, modify amount of work to
complete during class.
G/T – Have students research interest rates for common savings and loan products such as savings bonds,
certificates of deposit, and average market returns for various stock markets. Have them present orally to the
class with Q&A on their findings and savings suggestions. Have them participate in ‘For the Glory’ bonus
question.

Assessment Strategies:

Observe students as they start their homework worksheet.

Graded Assignment Calculating Simple and Compound Interest over time.

Closure:

o Recap Lesson – ask questions to confirm understanding.

o Confirm students know the homework assignment through verbal repetition.
o Ask students to reexamine their ‘Bell Ringer’ responses and write a few words in response on the same
paper. Collect ‘Bell Ringer’ slips as exit tickets as students exit the classroom door.

Homework Assignment:

• Calculate
• Calculate Simple and Compound Interest and Total Amount for a principal sum of $1000 at an interest
rate of 5% compounded annually for 20 years. Place results in a table.
• Show
• Show calculations through year five for both interest calculations. Show each iterant calculation for
compound interest.
• Look
• Look for any patterns in how the interest and total sum changes. Write a few sentences about what you
see.
• ‘For the Glory’ Bonus Question
• What happens if I BORROW money? Everything is the same as above principal sum of $1000 at an
interest rate of 5% compounded annually with Compound Interest. How much do I have to pay back
each year to pay it off in 10 years?