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.
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.