Standard #: SS.8.FL.3.6


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Identify the value of a person’s savings in the future as determined by the amount saved and the interest rate. Explain why the earlier people begin to save, the more savings they will be able to accumulate, all other things equal, as a result of the power of compound interest.


Remarks


Use the Rule of 72 to determine the number of years it will take for their savings to double in value. Using a formula for compound interest, calculate how much two different savers, one who starts to save at age 21 and one who starts to save at age 35, will have at retirement.

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.6 Identify the value of a person’s savings in the future as determined by the amount saved and the interest rate.


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