This experiment tested the hypothesis that rewards given for progress during competency development promote children's mathematical skill development, percepts of self-efficacy, and interest. Children received didactic instruction in division operations and were offered rewards contingent on their actual progress, rewards for simply participating, or no rewards. Results showed that progress-contingent rewards led to higher task involvement, skill development, perceived efficacy, and interest. Regardless of treatment, perceived efficacy bore a significant and positive relationship to subsequent task interest in the absence of incentives. (Author/MNS)