This document discusses compound interest and Einstein's view that it is the most powerful force on Earth. It provides definitions and examples of simple and compound interest, demonstrating how to use the Rule of 72 to calculate how long it takes money to double with compound interest. It includes exercises for students to create a spreadsheet modeling a savings plan with compound interest.

1. According to Einstein
THE GREATEST DISCOVERY

2. E=mc²?!?
"Compound interest was not only
man's greatest invention, but it was
also the most powerful force on
Earth."

3. Simple Interest
•Define.
• What is Interest?
•Practice.
• Examples.
•Quiz.
• Question.

4. Compound Interest
•Use simple scenarios.
•Do not start with the formula.
•Pose the question, How long would
it take to double my money?

5. The Rule of 72
• Demonstrate the actual way to find the amount of
time it would take to double your money using
logarithms.
• Introduce the Rule of 72.
• Walk students through an exercise to create a
spreadsheet in Excel.
• Show them visual.
• Introduce project, A Savings Plan.

6. The Rule of 72
Spreadsheet and Graph

7. Credits…
 Jackie Morgan. The Savings Search.
http://www.frbatlanta.org/pubs/extracredit/extr
a_credit-spring_2006-
lesson_plansavings_search.cfm?redirected=true
 L.E. Duncan http://voices.yahoo.com/albert-
einsteins-greatest-discovery-rule-72-
129926.html?cat=3
 Tanisha Johnson