Financial+Model+Application

[Washington Applied Math Council team] · How can we use mathematics to create models and make decisions about financial data? || · **To be able to create and explain graphs on simple and compound interest** · **To be able to find all values involved in simple and compound interest formulas and which formulas to use in a given situation** · **Understand how interest and minimal payments relate to credit cards** · **Understand how compounded interest and paying off principal affects mortgage loans and be able to manipulate loan formulas to find all variables** · **To select and justify which financial formula to use to find required personal loan information** · **To use excel spreadsheets and the formula capabilities to support loan research, graphs, and tables** · **Understand piecewise functions, use, manipulate, and graph** · **Understand depreciation and exponential depreciation and its affect on value** ||
 * **Financial Model Applications** ||
 * **Mathematics Frame: Algebra 2** ||
 * **CTE Frame: Applied Math** ||
 * **Time Expectation: 20 learning hours** ||
 * **Desired Results** ||
 * **Understandings** ||
 * That loans and interest are prerequisites for creating, manipulating, and planning your financial security. ||
 * **Mathematics Essential Questions** ||
 * · What are the mathematical models used in the financial community?
 * · What are the mathematical models used in the financial community?
 * **Concepts:** The students will know… ||
 * Students will gain an understanding of the reliability of the financial data generated and the value of data in financial investments. Students will gain an understanding of how borrowing affects personal financial decisions. ||
 * **Knowledge:** The students will know… ||
 * Students formalize their study of investment computing both simple and compound interest to determine borrowing strategies. They extend their use of financial models using graphing to analyze and interpret to make appropriate financial decisions. Students explore personal finance models to extend their knowledge to business models. ||
 * **Skills:** The students will be able to… ||
 * · **To understand the difference between simple and compound interest**
 * **Standards Addressed** ||
 * A1.1.A Select and justify functions and equations to model and solve problems. ||
 * A1.2.B Recognize the multiple uses of variables, determine all possible values of variables that satisfy prescribed conditions, and evaluate algebraic expressions that involve variables. ||
 * A1.6.A Use and evaluate the accuracy of summary statistics to describe and compare data sets. ||
 * A1.6.B Make valid inferences and draw conclusions based on data. ||
 * A2.1.A Select and justify functions and equations to model and solve problems. ||
 * A2.1.B Solve problems that can be represented by systems of equations and inequalities. ||
 * A2.1.D Solve problems that can be represented by exponential and logarithmic functions and equations. ||
 * A2.2.B Use the laws of exponents to simplify and evaluate numeric and algebraic expressions that contain rational exponents. ||
 * A2.2.C Add, subtract, multiply, divide, and simplify rational and more general algebraic expressions. ||
 * A2.4.A Know and use basic properties of exponential and logarithmic functions and the inverse relationship between them. ||
 * A2.4.C Solve exponential and logarithmic equations. ||
 * A2.5.C Plot points, sketch, and describe the graphs of functions of the form //f// (//x//) = (//a/ x)// + //b//, //f( x)= (a /x2)// + //b//, and //f( x)= [a /(bx +c)]//, and solve related equations. ||
 * A2.8 all All Core Processes Covered ||

Ability to use a calculator. Understanding of the coordinate plane and graphing. || Personal loans in regards to credit cards and mortgage. Depreciation of value in terms of vehicles. Initial and exponential depreciation. ||
 * **Presenting Theme Problem:** ||
 * Having students looking at personal finance models to understand personal finance decisions that will affect them in the future such as savings, loans, and purchasing large items. ||
 * **Formative Assessment:** ||
 * There will be on going question and answer sessions, observations, and potential games and competitions. ||
 * **Summative Assessment:** ||
 * End of unit quiz and/or personal finance project. ||
 * **Necessary Prior Knowledge and Skills:** ||
 * Basic understanding of equations and manipulation of algebraic equations.
 * **Scope and Sequence of Instructional Activities:** ||
 * Looking at simple and compound interest and graphing.
 * **Necessary Materials:** ||
 * Copies of student worksheets, access to computers for research and excel ||
 * **Printed Resources:** ||
 * A financial book to pull supplemental problems ||
 * **Supplies:** ||
 * Calculators, rulers, graph paper ||
 * **Electronic Resources:** ||
 * None used ||
 * **Other (speakers, field trips, etc.):** ||
 * A loan officer. Possible field trip to dealership. ||