Florida SS.8.FL.5.2
The Standard
Calculate the amount of interest income received from depositing a certain amount of money in a bank account paying 1 percent per year and from owning a bond paying 5 percent per year in order to analyze that interest is received from money deposited in bank accounts as well as by owning a corporate or government bond or making a loan.
Florida Next Generation Sunshine State Standards for Social Studies
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students calculate one year of interest by multiplying the principal by the annual rate written as a decimal. They compare earnings from deposits, bonds, and loans at different rates.
What Mastery Looks Like
- Students correctly identify the principal, rate, and interest income in a problem. They explain why the same principal earns more interest at 5 percent than at 1 percent.
Common Misconceptions
- Students may multiply by 1 or 5 instead of 0.01 or 0.05. They may confuse interest income with the total balance or assume 5 percent always means $5.
How to Assess It
- Exit ticket: Calculate one year of interest on $800 at 1 percent and 5 percent, then state how much more the higher rate earns.
Lesson moves
Ways to Teach It
Give pairs $1,000 in play money and two rate cards, then have them calculate and label one-year earnings for each investment.
Ask students to write three sentences explaining why a $600 bond at 5 percent earns more than a savings account at 1 percent.
Use matching cards with principals, rates, and interest amounts, and have teams build correct sets before checking with a calculator.
Show a bank savings offer and a government bond rate, then have students calculate expected annual interest on $2,000.
Keep exploring
Related Standards
- SS.8.FL.1.7
Identify that interest, dividends, and capital appreciation (gains) are forms of income earned from financial investments.
- SS.4.FL.1.4
People can earn interest income from letting other people borrow their money. Explain why banks and financial institutions pay people interest when they deposit...
- SS.8.FL.3.2
Explain that, for the saver, an interest rate is the price a financial institution pays for using a saver's money and is normally expressed as an annual percent...
- SS.4.FL.3.5
Explain that when people deposit money into a bank (or other financial institution), the bank may pay them interest. Banks attract savings by paying interest. P...
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