How do banks calculate the amount of interest paid on a loan? In this lesson, students will view a Livescribe Pencast to learn how to find the dollar amount in interest that is due at maturity. This lesson uses different time periods such as days, months, and years in the calculation as well as varying interest rates.

Concepts

interest, simple interest

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Additional Tags

council for economic education, econedlink, econedlink: calculating simple interest, interest rate, principal, loan

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Classroom Considerations

• Knovation Readability Score: 3 (1 low difficulty, 5 high difficulty)