ANALYSIS OF STUDENTS' MATHEMATICAL CONCEPT UNDERSTANDING REGARDING SIMPLE AND COMPOUND INTEREST WITHIN THE CONTEXT OF FINANCIAL LITERACY

Abstract

A sound grasp of mathematical concepts is essential in mathematics education, particularly when students study simple and compound interest within financial literacy settings. This research examines students’ conceptual understanding of simple and compound interest through a financial literacy context. A qualitative descriptive design was employed. The research involved 32 students from class XI.3 at SMA Negeri 2 Slawi, with eight students chosen purposively for interviews. Data were gathered through written assessments, semi-structured interviews, and documentation. Data credibility was established through technical triangulation, and the analysis followed the Miles and Huberman framework, covering data reduction, data display, and conclusion formulation. The findings show that the majority of students demonstrated a good level of conceptual understanding. They could describe the concepts in their own words, distinguish the characteristics of simple and compound interest, and use the concepts when addressing financial-literacy problems. Nevertheless, several students found it challenging to relate mathematical ideas to everyday financial situations, choose an appropriate way to solve contextual problems, and interpret the results of their calculations. These findings suggest that incorporating financial literacy contexts into mathematics instruction may help students develop a more meaningful understanding of simple and compound interest.