Compound interest is great...until it isn’t.  The same mathematical principle that helps you build wealth in saving and investing can also work against you when it comes to debt. Understanding the power of compound interest will help you avoid some costly financial pitfalls and have it work in your favor.

1. View the MATH Collection: In today’s math activity, students will learn how to calculate compound interest! Check it out in MATH: Compound Interest Pitfalls.
   
2. Example: Students can use this step-by-step example to practice their practice problems.

3. Bring in Real World Application: Have your students learn more about credit card debt from this EdPuzzle Video - one of my personal favorite videos that demonstrate this concept in a very visual way!

About the Author

Abby Alcala

After graduating with a statistics major at UC Davis, Abby set off to Massachusetts to teach algebra 1 and geometry and enjoyed working with the curious and creative minds of high school students. She is passionate about helping students recognize and develop their strengths and leadership skills. She was instrumental in taking the high school cheer team to regional competitions, as well as elevating school spirit and pride through creating unity amongst the study body and educators. Back in the Bay Area, Abby is excited to work with other educators to build and share content to enhance the teaching experience in applied math and finance.