Simple Interest Project 2c294l

Name: ____________________________________

Due Date: __________

Simple Interest Project Interest is a topic that is commonly talked about in the world outside the classroom. When you invest your money in many types of bank s, you will earn interest on the money invested. Your task is stated below. You will work with a partner during this project. Part 1…  Find a bank online in which to invest your money. You may look at s offered by Bank of America, Citi Bank, Capital One, etc. Both you and your partner will invest in the same bank , but with different amounts of money.  You will follow the guidelines of that for the minimum amount that must be initially deposited. If the opening minimum balance is $5,000, you must invest $5,000 or more. This initial amount is known as the principal balance.  You will calculate the simple interested gained on your initial deposit after 6 months, 5 years, 25 years, and 50 years using the formula I = prt (p = principal, r = interest rate, t = time, in years).  After calculating the interest, you will work with your partner to complete the assigned questions. Part 2…  You will use an excel spreadsheet to find the simple interest earned on your principal every 6 months over the course of 50 years. Your spreadsheet should have the following columns…

 Using this spreadsheet, you will make a graph of the interest earned. This graph must have a title, labeled axes, and show the linear relationship between time, in years, and the amount of interest.  You will then answer questions about the graph and the relationship between time and simple interest. Your work will be graded using the rubric on the back of this task sheet. This sheet must be turned in with your project to receive full credit. Please be sure to read the task and the rubric carefully to ensure you have completed all that is asked. Use color to make your work stand out; your overall effort will be considered in your grade.

Name: ____________________________________ Expectations

Due Date: __________ Levels of Proficiency

(0-5 points) Did not address this part of the task or shows very little understanding. Most requirements from the task sheet are not met.

(10 points) Some elements of task are correct and/or some guidelines are met. Response shows some understanding.

(15 points) Shows understanding with minor flaws. OR Math is correct but reasoning is weak.

(20 points) Complete, correct, and thorough understanding. All guidelines specified in the task are followed.

Initial deposit follows guidelines of bank . The used is described on the questions sheet. Simple interest is calculated for all time periods specified. The decimal form of the percent is used correctly in the formula (I = prt). Simple interest questions and partner work comparison. An excel spreadsheet is used to calculate simple interest. A line graph showing the relationship between time and interest is created. The graph has a title and labeled axes. Questions on the relationship demonstrated by the graph created on excel.

Teacher Comments:

Score:

Level 1: 60-69 Level 2: 70-79 Level 3: 80-89 Level 4: 90-100

Self evaluation: What did you learn during this project? What might you still be struggling with? __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ Peer evaluation: Comment on the work done by your classmate on this project. to use vocabulary relevant to this project on simple interest. __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________

Name: ____________________________________ Simple Interest Project Questions – Part 1

Due Date: __________

1. Using the bank chosen, answer the following questions: a. What is the interest rate of this ?

b. How would you write this interest rate, in decimal form?

2. Calculate the simple interest for this bank over each of the following time periods. Use the simple interest formula, I = prt. Show all work in the boxes below. Time

6 months

5 years

25 years

50 years

Interest Earned

I = prt

I = prt

I = prt

I = prt

3. Compare your interest earned to your partner’s interest earned. Who earned more interest? Why? Examine the interest rate on their and their initial principal balance. __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ 4.

Over the years, as interest is earned, the balance on your will change. Calculate the new balance for your in each of the years specified.

Time Principal

(Amount initially deposited.)

New balance of the (Add the principal amount to the interest earned.)

6 months

5 years

25 years

50 years

Name: ____________________________________ Graph questions – Part 2

Due Date: __________

1. One way to know if a pair of variables has a linear relationship is to plot their values on a coordinate system. If you get a straight line, a linear relationship exists between these variables. Examine your graph showing time vs. interest earned. Is this relationship a linear relationship? Explain how you know. __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ 2. We have discussed several ways to determine whether or not this relationship is proportional. a. Is this a proportional relationship? If yes, use a proportion to prove this is true.

b. How can you identify that this is a proportional relationship by looking at the graph? __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ 3. The unit rate is also called the constant of proportionality. Here, the unit rate is interest per year. a. What is the unit rate, or constant of proportionality, for the bank you graphed?

b. Write an equation to represent this proportional relationship.

c. Use your equation to determine what the interest earned will be if your money remained in this for 500 years.

d. Bonus (worth 5 points): After 500 years, what would be the balance in the ?