LESSON PLAN TITLE: Savings Calculator: Part A
DEVELOPMENTAL MATH COURSE: 083
CONCEPT/TOPIC TO TEACH: Exponential functions:
a) Compound interest formula: FV = PV (1 + r)^t, where FV = future value, PV = present value, r = rate of return, t = time in years
STANDARDS ADDRESSED:
a) C-1: Pattern recognition
b) C-6: Visual representation of concepts
c) C-17: Problems related to the ordinary lives of students
d) P-2: Technology to aid in concept development
GENERAL GOAL(S):
a) Teach students how to use technology to solve a real-life problem
b) Model exponential function
c) Teach students the time value of money
SPECIFIC OBJECTIVES:
a) Learn how to use compound savings calculator
b) Apply this knowledge to figure out how much money can be earned at various interest rates over different lengths of time
a) Access to Internet
b) URL for compound interest calculator: http://www.northwestsavingsbank.com
a) Go to URL
b) Click on Financial tools
c) Click on compound interest calculator
d) Enter $2000 for starting amount
e) Enter $0 for additional contributions
f) Choose compound quarterly
g) Enter 6% for rate of return
h) Enter 12 for years
i) Click on Calculate
j) Record value
k) Repeat step ÒgÓ with rates of return of 2%, 3%, 4%, 5.5%, 7.2%, 8% and adjust years to get starting amount to double ($4000)
l) Make a chart of rate of return and number of years to double
m) Identify relationship between rate of return and number of years to double value
PLAN FOR INDEPENDENT PRACTICE: PART A
a) Instructor does one example on overhead computer with students of how to find number of years to double value
b) Students do the rest of the calculations outside of class
a) Count as two homework grades or one quiz grade
b) Make sure data is presented in organized format. Let student choose format.
c) Discuss student findings
d) Present formula of relationship between rate of return and number of years to double: Rate times # of years to double = 72