Simple & Compound Interest

Free

Grades 7–8AlgebraGuided journey: Discover, Learn, Practice, Apply

Interest is the price of borrowing money or the reward for saving it. Learn to turn a rate into a decimal, compute simple interest with $I = Prt$ , track a balance year by year, and see why compound interest, which earns interest on its own interest, beats simple over time. Aligned to CCSS 7.RP.A.3 (multistep percent problems).

What you’ll learn

Turn a rate into a decimal before using it: $4\% = 0.04$ .
Simple interest: $I = P \times r \times t$ , the same dollars each year.
Compound interest figures each year on the balance including past interest.
Compound always meets or beats simple, and the gap grows with rate and time.

Aligned to 7.RP.A.3

Simple & Compound Interest

Free

Grades 7–8AlgebraGuided journey: Discover, Learn, Practice, Apply

What you’ll learn

Turn a rate into a decimal before using it: $4\% = 0.04$ .
Simple interest: $I = P \times r \times t$ , the same dollars each year.
Compound interest figures each year on the balance including past interest.
Compound always meets or beats simple, and the gap grows with rate and time.

Aligned to 7.RP.A.3