## Calculating Simple Interest

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##### Related Projects and Outlines:

Students will calculate simple interest based on bank loans when purchasing a car.

### Introduction

This is lesson 3 in a series of 4 lessons about purchasing a car. In this lesson, students will be introduced to the topic of simple interest.  Simple interest is the interest that is charged to the outstanding balance of the loan. Students will watch a fun video clip to hook the content of this lesson.  They will complete a worksheet with you as guided practice to calculate simple interest. Remember the formula is I=PRT (T for time is how many months in equivalent to a year) They will follow up with your option of 4 scenarios students complete as an assessment.

### Lesson Times

1 class period (50 minutes)
50 Minutes

### Industries / Subjects / Grades

##### Industries / Pathways
• Education, Child Development, and Family Services
• Consumer Services
• 10
• 11
• 12

### Standards and Objectives

#### Related Instructional Objectives (SWBAT...)

• Determine how simple interest rates are calculated.
• Calculate various simple interest rate problems.

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