1. The Concept of Interest By McKay Clarke

2. Interest Definition: (Finance) a charge for borrowed money that is generally a percentage of the amount borrowed  Savings Accounts  Checking Accounts  Loans

3. House Example  250,000 Loan from Bank of America  30 year term  5.2% interest rate  Monthly Payment: $1,372.78 Place this information in a amortization schedule calculator

4. House Example Continued Principal by Month 1.$289.44 120.$486.31 *164. $687.29 240. $817.06 360. $1,366.85 Interest by Month 1.$1,083.33 120. $886.47 *164. $685.49 240. $555.72 360. $5.92

5. House Example Results Totals Paid  Principal: $250,000  Interest: $244,199.79  360 payments:$494,199.79

6. Another Example  Children’s Book!  5-10 years old  Based on very simple concepts of interest and earning money

7. The Caramel Candy Game BY McKay Clarke Illustrations by Chris Clarke Inspirational Guidance by Kevin Clarke AGES 5-10

8. Carson sprung off his mattress and ran to his closet to get dressed for school. Early one September morning, a small boy rose from his bed.

9. Today wasn’t just a regular day of school, today was a very special day. Carson’s teacher told the students that they would be playing a game and prizes would be awarded to the winners!

10. Carson imagined what the prizes could possibly be. A ball, a whistle, maybe even a new jump rope. All the amazing possibilities he could imagine receiving for being the best!

11. He barreled down the stairs and into the kitchen where his mom had already prepared breakfast.

12. “Slow down!” his mom said, “The bus doesn’t leave for another ten minutes!” But Carson could not contain himself. He devoured his breakfast and bolted for the door.

13. The bus arrived right on time and Carson hopped on for the short ride to the school.

14. Carson arrived on time and was ready for school when much to his surprise, Ms. Walters, Carson’s teacher, announced that the game would be played directly after lunch was over.

15. After what seemed like hours, the bell rang to return to class from lunch. All the kids ran from the playground to the classroom.

16. When Carson pushed his way through the crowded doorway, he saw that Ms. Walters had placed a piece of hard candy on each desk.

17. Everyone sat down and Ms. Walters began to explain. “Each of you have been given a delicious caramel hard candy. You can eat it now if you would like!”

18. A few children grabbed their candy eagerly and began to unwrap it rapidly. “But!” exclaimed Ms. Walters, “If you wait ten minutes, I will give you a second caramel candy!”

19. A few already had the candy in their mouths, and others debated eating it. Most gave in, but a few still held their candy in their small hands including Carson

20. Carson didn’t know what to do. The candy looked SO delicious and he was jealous of the others who were happily enjoying theirs.

21. Time passed and Carson kept putting the candy to his mouth, then slowly pulling it away. He wanted that second candy so bad.

22. He repeated this process till finally ten minutes had passed. He displayed his full candy to Ms. Walters. She looked at him in a pleased manor and placed another candy on his desk.

23. Ms. Walters went to the front of the classroom. “If you save what you have, you have a chance to get more. When you get older, if you put money in the bank, it turns into more money! This is called interest!”

24. Carson sat in his desk thinking. Thinking of his two wondrous candies, and the lesson he had just learned about becoming a rich man.

25. 3 Questions! What can you do if you save up your money? What can you do if you save up your money? What can you do to save up money now? What can you do to save up money now? What kind of attitude helped Carson to prevail through the interest test? What kind of attitude helped Carson to prevail through the interest test?

26. Citations  Illustrations for story book by Chris Clarke  Inspirational guidance and motivational backrubs by Kevin Clarke  Uchtdorf, Dieter F. "Continue In Patience." The Church of Jesus Christ of Latter-Day Saints General Conference. The Church of Jesus Christ of Latter-Day Saints Conference Center, Salt Lake City. 3 Apr. 2010. Speech.  Merriam-Webster, Inc. "A Dictionary of the English Language." Funk and WagNalls Home and Student Dictionary. 2nd ed. N.p.: Funk and Wagnalls Corporation, 1989. 271. Print. Webster's New Ideal Dictionary Second Edition.  All clipart obtained from Microsoft Office