The Business of Interest
In this lesson, students will develop an understanding of interest, calculate interest on loans and learn that interest is added onto the principal of the loan and can necessitate additional income for repayment. Students will also learn key terms associated with loans. Students will complete hands-on activities by choosing appropriate loans for a variety of business needs. Afterward, students will use the online T-shirt business interactivity, "Rags to Riches," to apply the concepts they have learned into a scenario involving loan repayment in a small-business enterprise. Finally, students will discuss the concept of sustainability in a business context, discovering how sustainable business practices can support the profitability of a business. Students will study a hypothetical company profile to discuss potential sustainable business practices the company could adopt and how they might save money for the company.