Compound Interest

Author

Texas Instruments

Alignment

Standards Alignment

Textbook Alignment

Subject Area

Financial Literacy: Investments: Investments

Level

9-12

Activity Time

60 Minutes

TI Calculator

TI-83 Plus Family

TI-84 Plus

TI-84 Plus Silver Edition

TI-Nspire™ CX/CX II

Resource Types

Lessons

Format

TNS

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Compound Interest

Activity Overview

In this activity, students will calculate compound interest. They understand that in compound interest computations, the interest from the previous period is added to the current principal and the new total is used as the basis for calculating the interest.

About the Lesson

Students will explore how interest from a previous period is added to the current principal and how the new total is used as the basis for calculating the interest. They will:

Calculate the future value of investments that earn interest compounded annually, quarterly, and monthly

Enter the values for the total number of payments (N), annual interest rate ( I%), present value (PV), number of payments per year (P/Y) and number of compounding periods per year (C/Y)

Calculate the final value of the investments

Calculate the amount to be invested that will have a specified future value when invested under defined conditions

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About the Lesson

Compound Interest_84CE.zip Compound Interest_CXII.zip

Author

Texas Instruments

Alignment

Standards Alignment

Textbook Alignment

Subject Area

Financial Literacy: Investments: Investments

Level

9-12

Activity Time

60 Minutes

TI Calculator

TI-83 Plus Family

TI-84 Plus

TI-84 Plus Silver Edition

TI-Nspire™ CX/CX II

Resource Types

Lessons

Format

TNS

Report an Issue

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Compound Interest

Compound Interest

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