Download the Compound Interest Packet
This is a zip file containing all the files in the Compound Interest
Packet. Download it, and open it using WinZip or Stuffit Expander.
Excel Worksheets
Minimum skills level: High School level Algebra
Working knowledge of:
exponents, logs and ln, basic algebraic equation manipulation (order of operations, combining terms, etc.)
Brief Lesson Plan for Minimum Level:
Presentation of material -- distribute equation sheet, explain variable definitions and forms, explain how equations are entered in the calculator, work sample problems, demonstrate assessing and checking answers.
Worksheet requires use of calculator and equation sheet.
Discussion of results of worksheets, conclusions, implications.
Enrichment -- use current real life examples, financial news, credit card applications, loan conditions, mortgage terms, bank interest.
Advanced skills level: Precalculus or above
Working knowledge of:
all the above, strong equation manipulation skills (clearing terms, conjugates, inverses, etc.) at least familiarity with geometric series formulas
Brief Lesson Plan for Advanced Level:
Presentation of material -- work through the derivation of the financial equations from basic reasoning (details on sheets), work challenge examples with students (students make up conditions for input), demonstrate assessing answers as reasonable and checking answers.
Worksheet requires use of calculator.
Discussion of results of worksheets, conclusions, implications.
Enrichment -- use current real life examples, financial news, credit card applications, loan conditions, mortgage terms, bank interest
Technology:
Calculators:
Unit requires working knowledge of calculators with order of operations, powers and ln.
How to enter equations in TI-model calculators included with examples. (How they are displayed on the example is exactly the calculator form.) Take special care with negatives vs. minus signs, parentheses and exponent symbols.
Excel Spreadsheets
Each example and worksheet area has an accompanying Excel spreadsheet, most with imbedded graphs. When possible, the worksheet is protected except for key inputs (principle, interest rate, time, etc.) so students may input their own terms and view results of such changes. Worksheets may also be used to accompany example presentation.
(Note: When a cursor is placed on an Excel graph near the plotted line, it displays the coordinates of the curve at the cursor. The spreadsheet will also redraw the graph when new starting conditions are entered in the spreadsheets. Save originals of worksheets in safe place.)