Compound Interest Lesson Plan

Instructor: Dana Dance-Schissel

Dana teaches social sciences at the college level and English and psychology at the high school level. She has master's degrees in applied, clinical and community psychology.

Would your students be better off placing their savings in an account offering simple or compound interest? A video lesson explains these concepts and an activity allows for guided practice. Extensions and related lessons allow for ongoing study.

Learning Objectives

Upon completion of this lesson, students will be able to:

  • define 'interest'
  • distinguish between simple and compound interest
  • apply the formula to calculate compound interest


1 hour


  • A worksheet with 50 compound interest problems listed

Curriculum Standards


Apply properties of operations as strategies to add, subtract, factor, and expand linear expressions with rational coefficients.


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