Simple vs Compound Interest | 8th Grade Math - Personal Finance
Perfect for students in traditional classrooms, homeschool families, and anyone who needs a clear math explanation!
Learn the difference between simple and compound interest — and how to calculate both — in this essential 8th grade math and personal finance lesson.
✏️ Topics covered:
• Reviewing the simple interest formula: I = P × r × t
• Calculating simple interest and total amount for savings accounts and loans
• Defining compound interest: interest is earned on the principal AND on previously earned interest
• Compound interest formula: A = P(1 + r)^(t)
• Breaking down the compound interest formula: P = principal, r = annual rate, t = time in years
• Why compound interest is powerful for savings and dangerous for debt
• Real-world comparisons: savings accounts, credit card debt, and investment accounts
📚 Mrs.D Math helps students master math one lesson at a time.
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TEKS 8.12D