Education Technology

Mathematics lessons for IB® Diploma Programme

Analysis and Approaches | Numbers and Algebra

Compound Interest

Activity Overview

Represent and analyze mathematical situations and structures using algebraic symbols.

Before the Activity

Provide each student with a copy of the attached .pdf document.

During the Activity

Students will:

  • Calculate the future value of investments that earn interest compounded annually, quarterly, or monthly.
  • Calculate the final value of the investments.
  • Calculate the amount to be invested that will have a specified future value.

After the Activity

  • Review student answers
  • As a class, discuss questions that appeared to be more challenging
  • Re-teach concepts as necessary