Simple Interest: Saving for your dream house
Activity Description
Teach students how math connects to real life with this engaging, real-world worksheet on Simple Interest. In this activity, students take on the role of someone saving for the down payment of their dream home—a goal of $100,000 in 10 years. As they work through three types of problems, they’ll gain valuable financial literacy skills while practicing key 7th grade math standards.
This worksheet includes:
- 💡 Part 1: Calculate the simple interest earned when principal, interest rate, and time are given.
- 🔍 Part 2: Work backwards to find how much money needs to be deposited today to reach a savings goal.
- 📈 Part 3: Determine the interest rate needed to hit a future target with a known principal and time.
Students apply the formula I=P×R×T in multiple ways—reinforcing proportional reasoning, percent applications, and basic algebraic manipulation. The real-world scenario keeps students motivated and helps them see why math skills are essential for smart money decisions.
Standards Covered:
- CCSS.MATH.CONTENT.7.RP.A.3 (Multi-step percent problems)
- CCSS.MATH.CONTENT.7.EE.B.3 (Solving real-life math problems with expressions and equations)
Features:
- Real-world financial scenario students can relate to
- Auto-graded and randomized for individual learning paths
- Perfect for classroom use, homework, or financial literacy units
- Encourages critical thinking and financial planning skills
Help your students connect math with their future—download and assign this worksheet today!
Learning Objective
The learning objectives are:
- Understand the concept of simple interest and its application in real-world scenarios.
- Apply the concept of percentages to calculate simple interest.
- Develop proficiency in using the formula for calculating simple interest: Simple Interest = Principal * Rate * Time.
- Enhance problem-solving skills by solving practical problems related to saving, investing, and financial planning
- Interpret and analyze the relationship between principal, interest rate, and time to make informed financial decisions.
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