In this activity, students will compare the different growth patterns for a sum of money invested under a simple interest plan and a compound interest plan.
ACMNA229 - Connect the compound interest formula to repeated applications of simple interest using appropriate digital technologies
Simple interest, compound interest, investment, balance spreadsheet
About the Lesson
Students create a spreadsheet to calculate the growth of a simple interest investment over a number of years. They then create a similar spreadsheet to calculate the growth of a compound interest investment. Students compare their results to determine which one is the better investment.