Unlocking Simple Interest: The Basics of Rate, Time, and Principal

Unlocking Simple Interest: The Basics of Rate, Time, and Principal

Learning Objective

Understand how to calculate simple interest, and its components: rate, time, and principal.

What do you already know about interest and its calculation?

What is Simple Interest?

Simple interest is the interest calculated only on the principal amount of a loan or deposit.

Components of Simple Interest

Rate, time, and principal are the key components used to calculate simple interest.

Calculating Rate

The rate is the percentage of the principal that is charged as interest over a certain period.

Calculating Time

Time represents the duration for which the principal amount is borrowed or invested.

Calculating Principal

Principal is the initial amount of money invested or borrowed.

Formula for Simple Interest

The formula for calculating simple interest is: I = P * r * t, where I is the interest, P is the principal, r is the rate, and t is the time.

Real-life Applications

Simple interest is used in various financial transactions such as loans, savings accounts, and investments.

Problem-solving Activity

Solve simple interest problems involving different combinations of rate, time, and principal.

Review of Concepts

Recap the key concepts of rate, time, and principal in simple interest calculations.

Interactive Quiz

Engage in a quiz to test understanding of simple interest concepts.

Conclusion and Recap

Summarize the key takeaways from the lesson and emphasize the practical applications of simple interest.

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.