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Interest Comparisons WORKSHEET
Suitable for Grades: Algebra II, IM 1
CCSS: HSA.SSE.B.3.C, HSA.SSE.B.4
CCSS Description: Use the properties of exponents to transform expressions for exponential functions. For example the expression 1.15t can be rewritten as (1.151/12)12t ≈ 1.01212t to reveal the approximate equivalent monthly interest rate if the annual rate is 15%.
Derive the formula for the sum of a finite geometric series (when the common ratio is not 1), and use the formula to solve problems; for example, calculate mortgage payments.
Derive the formula for the sum of a finite geometric series (when the common ratio is not 1), and use the formula to solve problems; for example, calculate mortgage payments.
Interest Comparisons WORKSHEET DESCRIPTION
Students have the opportunity to calculate and compare simple and compound interest throughout this worksheet; it begins by providing formulae that can be used to calculate both, a good opportunity to discuss their similarities and differences with your class or individual.
In section A, pupils are asked to show which type of interest gives the largest final amount in four different scenarios. Each question has been carefully curated; in the first two questions the percentage interest rates are the same and in the last two the percentage rates are different.
Section B consists of different 3 questions where learners will make financial comparisons and choices with varying interest rates, time periods and scenarios.
