edHelper.com Economics Brian, Ryan, and Diane Learn About Opportunity Cost

Brian, Ryan, and Diane Learn About Opportunity Cost

Vocabulary
 challenging words: depositor, trade-off, safekeeping, trade-offs, versus, best, compounding, yearly, benefits, income, invest, earning, financial, compare, diploma, loss content words: By August, In August, While Brian

Print Brian, Ryan, and Diane Learn About Opportunity Cost

Quickly Print - PDF format
 Quickly Print: PDF (2 columns per page) Quickly Print: PDF (full page)

Quickly Print - HTML format

Feedback on Brian, Ryan, and Diane Learn About Opportunity Cost

 Brian, Ryan, and Diane Learn About Opportunity Cost By Cindy Grigg

1     Brian, Ryan, and Diane are triplets. They each get an allowance of \$10 each month. Their parents are planning on a big vacation to Florida in August. The triplets are planning to save their allowances until then so they will have spending money on vacation. Right now, they are spending Christmas break with their grandma. Their grandma has suggested that they give her their allowances for safekeeping until the trip. She agreed to pay them 20% per month interest on their allowances for eight months. They will not be able to get any of their money back from their grandma until vacation time after they begin "depositing" it with her. She has left it up to each of the triplets to decide what to do with the interest.

2     A common decision people must make is how to invest their money. Depositing money in a savings account is a common financial decision. There are two main types of savings accounts. Some accounts earn simple interest. These accounts pay the interest earned to the account depositor who can use the money right away for needs or wants. Some accounts earn compound interest. These accounts leave the interest earned in the account. The depositor will then earn interest on the interest, which is called compounding. The interest earned is called compound interest.

3     As usual, each of the triplets wants to do things a little differently. Brian wants his grandma to give him the interest each month so that he can have a little spending money until August. By August, he will have \$80 saved for vacation. He will have \$72 to spend between now and August. His money will earn simple interest. In August, his account will have the sum of his deposits and nothing more.

Paragraphs 4 to 10:

 Create Weekly Reading Books Prepare for an entire week at once!

Economics

Social Studies

 United States History and Theme Units American Government Ancient America Ancient China Ancient Egypt Ancient Greece Ancient India Ancient Mesopotamia Ancient Rome Biographies Canadian Theme Unit Country Theme Units Crime and Terrorism Economics European History: 1600s-1800s

 Explorers Famous Educators Geography Grades 2-3 Social Studies Wendy's World Series History of Books and Writing History of Mathematics How Can I Help? Inventors and Inventions Middle Ages Renaissance World Religion World War I World War II World Wonders

More Activities, Lesson Plans, and Worksheets