Education Technology

Growing Interest

Published on 09/11/2013

Activity Overview

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.

Objectives

ACMNA229 - Connect the compound interest formula to repeated applications of simple interest using appropriate digital technologies

Vocabulary

  • 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.