Standard #: SS.8.FL.3.4


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Explain that, when interest rates increase, people earn more on their savings and their savings grow more quickly.


Remarks


Calculate the total amount of interest earned on two certificates of deposit—one with a higher rate of interest than the other—and explain how the certificate of deposit with the higher interest rate can help a saver reach his or her savings goal faster.

Related Courses

Course Number1111 Course Title222
2104060: M/J Introduction to Personal Financial Literacy (Specifically in versions: 2019 - 2022, 2022 - 2023, 2023 - 2024, 2024 and beyond (current))


Related Access Points

Access Point Number Access Point Title
SS.8.FL.3.AP.4 Identify how when interest rates increase, people earn more on their savings and their savings grow more quickly.


Related Resources

Lesson Plan

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.

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