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 accounts, 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 account online in which to invest your money. You may look at accounts
offered by Bank of America, Citi Bank, Capital One, etc. Both you and your partner
will invest in the same bank account, but with different amounts of money.
You will follow the guidelines of that account 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
account. The account
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?
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Peer evaluation: Comment on the work done by your classmate on this project. Remember to use
vocabulary relevant to this project on simple interest.
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Name: ____________________________________
Simple Interest Project Questions Part 1

Due Date: __________

1. Using the bank account chosen, answer the following questions:

a. What is the interest rate of this account?

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

2. Calculate the simple interest for this bank account 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 partners interest earned. Who earned more interest?
Why? Examine the interest rate on their account and their initial principal balance.
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4.

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

Time
Principal

(Amount initially
deposited.)

New balance of the

account
(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?
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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 account 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 account for 500 years.

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