What this lesson teaches
Simple and compound interest.
Financial Knowledge
Can you finish simple interest vs compound interest in about 35 min?
Simple Interest vs Compound Interest
You will simple and compound interest.
Duration35 min
Age GroupAges 12–16
DifficultyIntermediate
SubjectFinance
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What you need
How the activity runs
The learning connection
Graphing both interest types on the same axes makes the divergence between them visually dramatic — the 'power of compounding' is felt, not just calculated. This visual and emotional impact is what makes the concept memorable enough to influence real financial decisions later in life.
Try it with your learner
1. Calculate SI for 3 years at 10% on 1000. 2. Calculate CI same terms. 3. Compare. 4. Graph growth.