🎯 WALT (We Are Learning To)

Understand and use the compound interest formula A = P(1 + r/n)^(nt)

✅ Success Criteria:

• I can identify each part of the compound interest formula

• I can substitute values into the formula

• I can calculate compound interest for real savings scenarios

📊 The Formula Breakdown

A = P(1 + r/n)^(nt)

💰 A = _________________ (the final amount you'll have)

🏦 P = _________________ (the money you start with)

📈 r = _________________ (interest rate as a decimal)

🔄 n = _________________ (how often interest is added per year)

⏰ t = _________________ (number of years)

💡 Part 2: Working with Real Numbers

Example: Sarah saves $1000 at 5% interest per year, compounded annually for 3 years.

P = $1000, r = 0.05, n = 1, t = 3

A = 1000(1 + 0.05/1)^(1×3) = 1000(1.05)³ = $1157.63

Jake invests $2000 at 4% interest, compounded annually for 5 years.

P = $________ r = ________ n = ________ t = ________

A = 2000(1 + 0.04/1)^(1×5) = 2000(1.04)⁵ = $________

Interest earned = Final amount - Starting amount = $________ - $________ = $________

🚀 Part 3: Your Turn

Hint: Monthly compounding means n = 12

P = $________ r = ________ n = ________ t = ________

Final amount: $________

Option A: $1000 at 7% for 1 year, compounded annually

Option B: $1000 at 6.5% for 1 year, compounded monthly

I choose Option ________ because ________________________________

🌟 Extension Challenge (Advanced Learners)

Bank name: _________________ Interest rate: _______% Compounding: _________

Calculate how much $5000 would grow to in 10 years with this account:

📝 Reflection