Welcome to Savings.
This week is about how money grows over time. By Sunday you'll know the difference between simple and compound interest, how an annuity adds up over years of monthly deposits, and why starting earlier matters more than saving more.
You'll meet three formulas you'll use the rest of the course: simple interest (FV = P(1+rt)), compound interest (FV = P(1+r/n)nt), and annuity future value. The shapes look heavy on the page; the moves are small.
By the end of this week, you'll be able to:
- Use simple and compound interest formulas to analyze financial issues.
- Explore the relationship between the Consumer Price Index (CPI) and inflation.
- Use the lump sum and annuity formulas to explore methods of financial savings.
- Analyze systems of investments to help develop financial literacy skills.
Four phases, in order. Don't skip ahead — each one sets up the next.
- L01 · What interest actually is.
- L02 · Simple interest, the warmup formula.
- L03 · Compound interest, and where it leads.
- L04 · The rate you really earn.
- L05 · Lump sum vs. annuity.
- L06 · Build a savings plan.
- DQ 1 · Simple & Compound Interest, Annuity FV, Solve for M
- DQ 2 · MA2 preview, Income & projection, Subsidized vs. unsubsidized loans
- Q1 · Finding the interest and future value of a simple interest loan or investment
- Q2 · Finding the principal, rate, or time for a simple interest loan whose term is given in months or days
- Q3 · Calculating and comparing simple interest and compound interest
- Q4 · Finding the future value and interest for an investment earning compound interest
- Q5 · Computing the interest and repayment amount for a simple interest loan whose term is given in months or days
- Q6 · Finding the future value of an annuity
Plan for the whole week. These are typical times, not maximums — go faster if it clicks, slower if you're getting stuck.
You won't get through every lesson on the first try. Here's where to look:
Ready to start?
▸ Start Lesson 01