In this activity, students compare simple and compound interest in graph form. By doing this students will gain insight into interest and interest formulas, exponential and linear growth, and real world investment strategies.
Before the Activity
Review, as necessary simple interest and compound interest and ensure students read directions and hand out carefully.
During the Activity
Hand out a copy of the That's Interesting sheet to the students to complete. Answers are provided on the Teacher's Notes attachment.
After the Activity
Have students contribute in Activity Centre and discuss any discrepancies of the graphs and possible mathematical reasons why. (i.e., did they forget to change percent to a decimal in the Interest formula, etc.)