Lesson Plan

Why Do Banks Pay YOU to Provide Their Services?

Curated and Reviewed by Lesson Planet

How does a bank make money? That is the question at the based of a lesson that explores the methods banks use to calculate interest. Groups compare the linear simple interest pattern with the exponential compound interest pattern. 

36 Views 26 Downloads
CCSS: Designed
Additional Tags
Instructional Ideas
  • Create collaborative groups to work through the simple interest and compound interest examples; ask groups to make a statement comparing and contrasting the two types of interest
  • If learners have difficulty writing the equations, have them create tables of values and examine the patterns
Classroom Considerations
  • A review of percents may be necessary depending on student backgrounds
  • The fourth in a series of 36 related resources
Pros
  • Analyzing the two types of interest allows for a comparison of linear and exponential patterns
  • All handouts, keys, and a teacher guide are included
Cons
  • None