Explain that, for the saver, an interest rate is the price a financial institution pays for using a saver’s money and is normally expressed as an annual percentage of the amount saved.
Remarks
Define an interest rate as the price paid for using someone else’s money, expressed as a percentage of the amount saved.
Subject Area: Social Studies
Grade: 8
Strand: Financial Literacy
Date Adopted or Revised: 06/14
Status: State Board Approved
Related Courses
Related Access Points
| Access Point Number |
Access Point Title |
| SS.8.FL.3.AP.2 | Identify an interest rate as the price paid for using someone else’s money, expressed as a percentage of the amount saved. |
Related Resources
Lesson Plans
| Name |
Description |
| Comparing Simple Interest and Compound Interest | Students will analyze and manipulate a spreadsheet to compare the effects of simple interest and compound interest when borrowing or saving money, in this lesson plan. |
| In Whose Best Interest is Interest? | Students will use simple interest to explore real world examples of interest rates. Students will explore loan rates, CD rates and compare benefits of different rates versus different terms of loans. |
