How To Interest Rates Lesson Plan for 7th Grade Students

Topic: Interest rates

Objectives & Outcomes

• Students will be able to calculate the interest rates on personal loans and understand how interest rates affect their personal finances.

Materials

• Calculator
• Personal loan information (interest rate, length of loan, amount borrowed)

Warm-up

• Ask students what they know about interest rates. Write their answers on the board.
• Introduce the concept of interest rates and explain that interest rates are the fee that borrowers pay to lenders for using their money.

Direct Instruction

• Show students a personal loan agreement or mortgage contract and explain the various terms and rates.
• Ask students to identify the principal, interest rate, and term of the loan.
• Have students work in pairs to calculate the monthly payment based on the principal and interest rate.
• Have students work in groups to analyze a personal loan advertisement and identify the key features and benefits of the loan.

Guided Practice

• Have students work in groups to create their own personal loan advertisement, including the key features and benefits of the loan.
• Have students work in pairs to calculate the monthly payment based on the principal and interest rate of their own personal loan advertisement.

Independent Practice

• Have students choose a personal loan product (e.g. car loan, mortgage loan, personal loan, etc.) and find out the key features and benefits of the loan.
• Have students create a personal loan advertisement, including the key features and benefits of the loan.
• Have students work in pairs to calculate the monthly payment based on the principal and interest rate of their own personal loan advertisement.**************************************************************************-Assessment
• Have students present their own personal loan advertisement to the class, including the key features and benefits of the loan.
• Have students work in pairs to calculate the monthly payment based on the principal and interest rate of their own personal loan advertisement.

Closure

• Discuss the importance of understanding and calculating interest rates when taking out a loan.
• Remind students to plan ahead and make sure they can afford the monthly payments on any personal loan they take out.

Assessment

• Observe students during the independent practice activity to assess their understanding of interest rates and how to calculate them.
• Have students turn in their completed worksheets as a form of assessment.