Notes:
For the other required credits in the bundle of credits, students in a Specialist High Skills Major
program must complete learning activities that are contextualized to the knowledge and skills
relevant to the economic sector of the SHSM. Contextualized learning activities (CLAs) address
curriculum expectations in these courses.
Specialist High
Skills Major
Business
Course code
and course title
Name of
contextualized
learning
Personal Finance
activity/activities
Brief description
of
contextualized
learning
activity/activities
Duration
Overall
expectations
Specific
expectations
Catholic
graduate
expectations (if
applicable)
Essential Skills
and work habits
Reading Text
Writing
Document Use
Computer Use
Money math
Working Independently
Organization
Instructional/Assessment Strategies
Teachers notes
Context
Students will be able to identify the skills learned in these lessons to real life
investments in the future.
Strategies
Assessment tools
Purpose
Additional Notes/Comments/Explanations
Showing the students how simple and compound interest work in both debt and
savings will provide a more practical understanding than only illustrating one or the
other.
Part 1 Simple Interest
 Introduce the activity by discussing the concept of tipping a waiter/waitress.
o See Appendix A Student Tip Question
o Use Appendix A as an overhead or within a PowerPoint Presentation.

Ask students about any debt they may have with a bank or financial institution
(e.g. credit card)
Homework
o Complete a similar table but in terms of debt and have students complete
for homework.
Homework
o Supply students with the spreadsheet file named Simple Interest
Amortization in the CLA folder. This can be done via the teacher website
or by sharing the file on a network drive at school. This file is also
available at the following web address:
http://www.vertex42.com/ExcelTemplates/simpleamortization.html
A = P(1 + r/n) nt
Have students complete the tutorial on a computer with headphones.
o The link is:
http://www.algebra.com/algebra/homework/word/finance/CompoundInterest.lesson
In the following Excel exercise, have students examine the effects of changing the
compounding periods each year for the following problem.
Suppose that $2000 is invested at a rate of 8% for 10 years, what are the compound
amounts for the following compounding periods? ( Have students complete their own
charts in excel or on paper)
Annually1
Semiannually2
Quarterly4
Monthly12
Daily365
Hourly8760
Minute525,600
Every second31,536,000
Homework
o Use Student Worksheet in Appendix E
Resources
Authentic workplace materials
Human resources
Print
Video
Software
o Microsoft Excel
o Microsoft Word
o Web Browser
Websites
o http://www.algebra.com/algebra/homework/word/finance/CompoundInterest.lesson
o http://www.vertex42.com/ExcelTemplates/simpleamortization.html
Other
Accommodations
List of Attachments

Simple interest is only calculated on the principal unlike compound interest which
is calculated on the principal and on all the previous interest. We will discuss
compound interest in upcoming classes.
I = Prt
Where:
* note: the time and the rate must be measured in the same time period. For
example if you were offered $12/yr how much would you get per month? $1.
Example:
Find the amount if a person invested $100 at 10%/a simple interest for 6 months.
Given Information:
I =?
P = 100
r = 0.1
t = 6 months (but the rate is per annum
or in years)
= 0.5 years
Solution:
I =Prt
= 100 0.1 0.5
=5
The total amount would be 100 + 5 =
$105 in 6 months.
Simple Interest
You have just won a lottery. What would you do with a Million Dollars?
Consider putting it into the bank. The bank will allow you to earn interest on your money. One
type of account is called a simple interest account.
Simple Interest is calculated using the formula I = Prt, where:
l is the interest
P is the principal amount of money you put into the account
r is the annual rate of interest that you get (changed into a decimal )
t is the time that the money is in the account (and is measured in years).
Problem 1: Consider $1 000 000 in the account that pays 2%/a (per annum or per year). You
leave the money in for one year. What is the interest you make and the total in the account?
Hint: Always list your variables before
you go to substitute them into a
formula.
P= 1 000 000
I = the variable we are looking for
r = 2% which is 0.02
t = 1 year
Solution:
I = Prt
= 1 000 000(0.02)(1)
= 20 000
After one year the amount in the account
would be 1 020 000.
10
11
t9 = a + (9 1)d
n=9
d = 20 000
Problem 2: I borrowed $4000 from the bank at a rate of 6.5%/a (per year) for 5 months. How
much must I repay in interest and in total?
Solution:
Hint: Always list your variables before
you go to substitute them into a
formula.
P= 4000
I = the variable we are looking for
r = 6.5% which is 0.065 for a year
t = 5 months or 5/12 years
Solution:
I = Prt
= 4000(0.065)(5/12)
= 108.33
After 5 months you would have to repay
$4108.33 ( P + I )
12
3. Sketch the line graphs below with 180 Number of periods and
250 (Include a legend).
4. How many years will it take to pay off the mortgage at 180
payments?
13
5. In cell D5, the interest rate is listed as 0.58% but when that
cell is selected, the formula bar displays =7%/12. If the
interest rate is divided by 12 what does this imply about the
Total # of Periods (Nper).