A Chinese New Year tradition lends itself to a simple lesson in percent and loan interest.
interest, percent, loan, borrow, money, Chinese New Year, China
Kung Hey Fat Choi! That's Happy New Year or, more accurately, May Prosperity Be With You, in Chinese.
Each year, Chinese New Year falls somewhere between January 21 and February 19 (click for this year's date).
In China, the start of the new year is a time of celebration. According to tradition, the new year is also a time for clearing away bad luck and paying off old debts.
Explain to students that
In most of the world, people who borrow money pay interest on the money they borrow. Interest is an extra charge paid for the privilege of being allowed to borrow money. Interest is usually stated in terms of a percent of the money borrowed. For example, a person might borrow $1,000 and pay 5% interest on that money. That means the person will actually pay back $1,000 plus 5% more.
But how does a borrower figure out how much money will be owed or paid back? Explain students that
Provide students with an example of how they might figure interest:
Let's say you borrow $1,000 at 5 percent interest.
How much would you have to pay back?
To find out, you would multiply the amount borrowed times (x) the interest rate.
$ 50.0000, or $50.00
The total interest you would be charged is $50.00. To figure out the total amount of money that you would need to pay back, add the interest to the amount borrowed for a total of
Share another example: Ask students to tell you how they would figure the total charge if they borrowed $2,000 at 10% (or .10) interest. Multiply $2,000.00 x .10 = $200.00 interest, for a total amount owed of $2,000.00 + $200.00, or $2,200.00.
Provide students with additional practice on the Kung Hey Fat Choi! work sheet.
WORK SHEET ANSWERS: 1. $1,050.00, 2. $2,080.00, 3. $1,035.00, 4. $5,350.00, 5. $472.00.
Lesson Plan Source
MATHEMATICS: Number and Operations
GRADES 3 - 5
NM-NUM.3-5.1 Understand Numbers, Ways of Representing Numbers, Relationships Among Numbers, and Number Systems
NM-NUM.3-5.2 Understand Meanings of Operations and How They Relate to One Another
NM-NUM.3-5.3 Compute Fluently and Make Reasonable Estimates
GRADES 6 - 8
NM-NUM.6-8.1 Understand Numbers, Ways of Representing Numbers, Relationships Among Numbers, and Number Systems
NM-NUM.6-8.2 Understand Meanings of Operations and How They Relate to One Another
NM-NUM.6-8.3 Compute Fluently and Make Reasonable Estimates
GRADES 9 - 12
NM-NUM.9-12.1 Understand Numbers, Ways of Representing Numbers, Relationships Among Numbers, and Number Systems
NM-NUM.9-12.2 Understand Meanings of Operations and How They Relate to One Another
NM-NUM.9-12.3 Compute Fluently and Make Reasonable Estimates
LANGUAGE ARTS: English
GRADES K - 12
NL-ENG.K-12.9 Multicultural Understanding
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