case 1

Compound Interest, Clip 1, 4:20

In this clip the teacher leads a discussion with the students about why different ways of compounding would make sense.

Compound Interest, Clip 2, 4:48

After the above discussion, the teacher goes back to a problem they were working on concerning a bank account with 1000 at 8% compounded monthly.

Compound Interest, Clip 3, 2:55

In this clip they discuss the annual growth factor.

Compound Interest, Clip 4, 5:07

The teacher is going over the formula for a bank account with a principal amount of 1000 and a rate of 8% compounded monthly.

Compound Interest, Clip 5, 2:49

This is a way to introduce students to compounding continuously.

Compound Interest, Clip 4, 5:07

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  • In discussing the bank account and the formula, the teacher keeps students involved by requesting input from other groups. They go through the parts of the formula as a class. This will help give value to each part of the general equation which students normally just memorize.  Even with the 12 he probes until the students refer to the 12 compounding periods in 1 year. 
  • Then he lets them explore the growth factor so they can figure out what percent per month they are getting in interest. 
  • They then discuss the annual yield for the account.  These topics can be confusing for students so it may be necessary to break them down.

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