8.12.A 8.12.C 8.12.D 8.12.E* 8.12.F* 8.12.G

Texas Essential Knowledge and Skills (TEKS) Personal Financial Literacy
Grade:	8th Grade
Standard:	8.12.A
Description:	solve real-world problems comparing how interest rate and loan length affect the cost of credit;
Standard:	8.12.C
Description:	explain how small amounts of money invested regularly, including money saved for college and retirement, grow over time;
Standard:	8.12.D
Description:	calculate and compare simple interest and compound interest earnings;
Standard:	8.12.E*
Description:	identify and explain the advantages and disadvantages of different payment methods;
Standard:	8.12.F*
Description:	analyze situations to determine if they represent financially responsible decisions and identify the benefits of financial responsibility and the costs of financial irresponsibility; and
Standard:	8.12.G
Description:	estimate the cost of a two-year and four-year college education, including family contribution, and devise a periodic savings plan for accumulating the money needed to contribute to the total cost of attendance for at least the first year of college.

Simple interest can be calculated using the formula below, where I is the interest, P is the principal, r is the interest rate, and t is the time in years.

I = Prt

Compound interest can be calculated using the formula below, where A is the final amount, P is the principal, r is the interest rate, and t is the time in years.

A = P(1 + r)^t

Texas Essential Knowledge and Skills (TEKS)

Personal Financial Literacy

8.12.A

solve real-world problems comparing how interest rate and loan length affect the cost of credit;

8.12.C

explain how small amounts of money invested regularly, including money saved for college and retirement, grow over time;

8.12.D

calculate and compare simple interest and compound interest earnings;

8.12.E*

identify and explain the advantages and disadvantages of different payment methods;

8.12.F*

analyze situations to determine if they represent financially responsible decisions and identify the benefits of financial responsibility and the costs of financial irresponsibility; and

8.12.G

estimate the cost of a two-year and four-year college education, including family contribution, and devise a periodic savings plan for accumulating the money needed to contribute to the total cost of attendance for at least the first year of college.