Personal Financial Literacy in the Mathematics Classroom

Patty McKenna, PhDMetropolitan State University(!) of Denver

Please contact me any time with questions, comments, or requests for electronic documents.

mckennap@mscd.edu

The Plan• Derivation of the Compound Interest

Formula

• A Brief Review of Logarithms

• Using the Annuity Formulas

• Using the TI-83/84 on Finance Problems

• Derivation of the FV Formula (if time allows)

Derivation of the Compound Interest Formula

• For this, we go to our handout…

The Plan• Derivation of the Compound Interest

Formula ✓

• A Brief Review of Logarithms

• Use of the Annuity Formulas

• Using the TI-83/84 on Finance Problems

• Derivation of the FV Formula (if time allows)

A Brief Review of Logarithms

“The exponent to which base b must be raised to get x is y.”

The Most Useful Property of Logarithms

But… WHY??!!!

The exponent to which base b must be raised to get xt is exactly the same as t times the exponent to which base b must be raised to get x.

A more formal “proof”…

The Most Useful Property of Logarithms

The Plan• Derivation of the Compound Interest

Formula ✓

• A Brief Review of Logarithms ✓

• Use of the Annuity Formulas

• Using the TI-83/84 on Finance Problems

• Derivation of the FV Formula (if time allows)

Using the Annuity Formulas

• For this, we go back to our handout…

The Plan• Derivation of the Compound Interest

Formula ✓

• A Brief Review of Logarithms ✓

• Use of the Annuity Formulas ✓

• Using the TI-83/84 on Finance Problems

• Derivation of the FV Formula (if time allows)

Using the TI-83/84 on Finance Problems

• For this, we’ll go back to the handout and check some of our work.

The Plan• Derivation of the Compound Interest

Formula ✓

• A Brief Review of Logarithms ✓

• Use of the Annuity Formulas ✓

• Using the TI-83/84 on Finance Problems ✓

• Derivation of the FV Formula (if time allows)

Derivation of the FV Formula (if time allows)

• For this, we’ll go “old-school”, starting with the “grains of wheat” problem.

The Plan• Derivation of the Compound Interest

Formula ✓

• A Brief Review of Logarithms ✓

• Use of the Annuity Formulas ✓

• Using the TI-83/84 on Finance Problems ✓

• Derivation of the FV Formula ✓

Personal Financial Literacy in the Mathematics Classroom

Patty McKenna, PhDMetropolitan State University(!) of Denver

Please contact me any time with questions, comments, or requests for electronic documents.

mckennap@mscd.edu