# CTE Resource Center - Verso - Economics and Personal Finance Task 1615847300

CTE Resource Center - Verso

Virginia’s CTE Resource Center

Compare the impact of simple interest vs. compound interest on savings.

Definition

Comparison should include calculating simple interest for a given amount, and calculating compound interest for the same amount on a daily, monthly, quarterly, and annual basis. It should also include an explanation of the role of compound interest in building wealth, including the Rule of 72 and the time value of money.

Related Standards of Learning

Mathematics

A.4

The student will solve
  1. multistep linear and quadratic equations in one variables algebraically;
  2. quadratic equations in one variables algebraically;
  3. literal equations for a specified variable;
  4. systems of two linear equations in two variables algebraically and graphically; and
  5. practical problems involving equations and systems of equations.

A.9

The student will collect and analyze data, determine the equation of the curve of best fit in order to make predictions, and solve practical problems, using mathematical models of linear and quadratic functions.

AII.9

The student will collect and analyze data, determine the equation of the curve of best fit in order to make predictions, and solve practical problems, using mathematical models of linear, quadratic, and exponential functions.

Other Related Standards

Economics and Personal Finance Standards of Learning

EPF.18

The student will demonstrate knowledge of investment and savings planning by
  1. comparing the impact of simple interest vs. compound interest on savings;
  2. comparing and contrasting investment and savings options;
  3. explaining costs and income sources for investments;
  4. examining the fundamental workings of Social Security and the system's effects on retirement planning;
  5. contrasting alternative retirement plans; and
  6. describing how the stock market works.

FBLA Competitive Events and Activities Areas

Accounting I

 

Accounting II

 

Business Calculations

 

Business Math

 

Economics

 

Introduction to Business

 

Personal Finance