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Simple vs. Compound Interest: Power of Compounding

(*)(*)(*)(*)( ) ( 4.0, 14 students)
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  • Price per Classroom$2.00
  • Grade Levels 7, 8, 9, 10
  • Topics Saving, Investment
  • Duration 20 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

Activity Description

The main goal of this worksheet is to help students understand the impact of compounding. Through a graphical method, they will learn the difference between simple and compound interest. Furthermore, as the investment duration increases, they will grasp the effect of compounding. Students need to comprehend these concepts since they play a significant role in personal finance decisions.


Students will utilize interactive controls, such as sliders, to interact with the worksheet. By adjusting the "Years" slider, they can observe the simple and compound interest graphs updating, along with the interest values changing. Additionally, students will be required to record interest values for various specified years, as illustrated in the table below.



Moreover, students will address several questions designed to reinforce their comprehension.

Learning Objective

This worksheet aims to help learners differentiate between simple and compound interest, compare their effects on savings, apply this knowledge to real-world financial scenarios, and ultimately enhance their financial literacy by making informed financial decisions based on the type of interest involved.

Teacher Tips

Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).
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  • Price$2.00
  • Grade Levels 7, 8, 9, 10
  • Topics Saving, Investment
  • Duration 20 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

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