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Name: ______________________

Class _____

In class, we have become familiar with the formula for simple interest: Simple Interest where I = simple interest, p = principal amount, r = interest rate, and t = time (in years). Interest is a topic that is commonly talked about in the world outside the classroom. Your task is to compare the amount of simple interest you would gain using two different bank accounts. Since it is very important to become familiar with different technologies available to you, you will use Microsoft Excel to create a spreadsheet to complete these calculations. Task: 1. Research two bank accounts (savings, CD, or Money Market) to deposit money into. Be sure to read the fine print! Your deposit must follow the terms of agreement of the account (i.e. minimum deposits must be met, long term CDs must be invested for the length of time specified, etc.). 2. Use Microsoft Excel to create a spreadsheet calculating simple interest over a chosen amount of time. The spreadsheet should have a minimum of 5 columns: principal, percentage rate, time, interest gained, and final balance. See the example below. Principal $11,000.00 Percentage Rate 0.2% 0.002 0.002 0.002 Time (in years) 1 2 3 Interest Gained I = prt; $22.00 $44.00 $66.00 Final Balance

$11,066.00

3. Create a line graph for each account based on the data inputted in part 2. The line graphs should show the simple interest gained over time. 4. How does the interest calculated for each account differ? Which account will make you more money? Write a paragraph explaining, in detail, what you notice about the interest gained in each account and which account would be a greater benefit to you in your money saving efforts.

Rubric for Interest Project Criteria Account Selection and Deposit (Task 1) 4 (16-20 pts) Shows complete understanding of the two accounts used. Deposit fits requirements of the account as stated in the fine print and interest rate is clear. 3 (11-15 pts) 2 (6-10 pts) 1 (0-5 pts) Points

Simple Interest Spreadsheet (Task 2) Graph (Task 3)

All steps are shown completely in calculating simple interest. Percentage is inputted in decimal form. The line graph shows simple interest over time. A title is included and both axes are labeled with proper scales shown. Writing describes, in detail, what is shown in the spreadsheets and compares the charts accurately. Careful attention is given to spelling/grammar/etc. Project is turned in on time during class on the due date with the task sheet and this rubric attached.

Deposit fits most Account An incorrect of the information is account is used requirements vague and/or fits (i.e. checking) stated by the bank some of the and none of the and/or most criteria listed on criteria specified information about the banks website. is followed the account is and/or account included. information is not included. All steps are A major error or Missing key shown but a several minor points/lacking minor error may errors have essential material. have occurred. occurred in Calculations are calculating simple incorrect or interest. incomplete. Graph is mostly A major error or Graph is not correct. several minor included or Labels/title may errors appear on significantly be missing. graph. incomplete. Writing could be more detailed but generally answers the questions asked in the task. Some spelling/grammar errors are made. Project is turned in within 1 week of project deadline. Writing is vague and shows a partial understanding of what is asked of in the task. Many spelling/grammar errors are made. Project is turned in within 2 weeks of project deadline. Writing does not address the questions asked in the task and/or shows an extremely limited understanding. Project is turned in within 3 weeks (or more) of project deadline.

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Writing Component (Task 4)

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Timeliness

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Teacher Comments:

Self Evaluation: __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________

Peer Evaluation: __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________

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