This task gives students an opportunity to work with exponential functions in a real world context involving continuously compounded interest. They will study how the base of the exponential function impacts its growth rate and use logarithms to solve exponential equations.

This lesson unit is intended to help teachers assess how well students are able to interpret exponential and linear functions and in particular to identify and help students who have the following difficulties: translating between descriptive, algebraic and tabular data, and graphical representation of the functions; recognizing how, and why, a quantity changes per unit intervale; and to achieve these goals students work on simple and compound interest problems.

This task is preliminary to F-LE Compounding Interest with a 5% Interest Rate which further develops the relationship between e and compound interest.

This task develops reasoning behind the general formula for balances under continuously compounded interest. While this task itself specifically addresses the standard (F-BF), building functions from a context, a auxiliary purpose is to introduce and motivate the number e, which plays a significant role in the (F-LE) domain of tasks.

This 11-minute video lesson provides an introduction to bankruptcy liquidation (Chapter 7). [Core Finance playlist: Lesson 22 of 184]

This 11-minute video lesson provides an overview of the estate tax. [Core Finance playlist: Lesson 155 of 184]

This 3-minute video lesson looks at what is the Futures Fair Value and how traders use it as an indicator for stock price direction at market opening. [Core Finance playlist: Lesson 158 of 184]

This 6-minute video lesson provides a basic overview of capital and human capital. [Core Finance playlist: Lesson 156 of 184]

This 3-minute video lesson takes a look at actual sequential and year-over-year inflation data. [Core Finance playlist: Lesson 160 of 184]

This 10-minute video lesson introduces balance sheets by looking at a home purchase to illustrate assets, liabilities and owner's equity. [Core Finance playlist: Lesson 7 of 184]

This 7-minute video lesson provdes an introduction to compound interest. [Core Finance playlist: Lesson 51 of 184]

This 15-minute video lesson provides an understanding of how mortgage interest rates are quoted. [Core Finance playlist: Lesson 178 of 184]

This 12-minute video lesson provides a basic introduction to risk and reward. [Core Finance playlist: Lesson 157 of 184]

This 9-minute video lesson uses the Rule of 72 to approximate how long it will take for an investment to double at a given interest rate. [Core Finance playlist: Lesson 52 of 184]

This 3-minute video lesson provides the basics of what price inflation is and how the CPI-U is calculated. [Core Finance playlist: Lesson 159 of 184]

In this lesson, students find out how much money NFL cornerback Patrick Peterson lost by not cashing his signing bonus check of over $15 million. Students start by guessing how much money he could have earned in interest if he had cashed the check right away. Then students are asked what information they need to know in order to solve the problem. A news article is given with extra information, and the equation for compound interest is used. Extension ideas are given to determine what the amount of money made would be for different amounts of time as well as a Desmos graphing exploration where students can change the rate and explore the amount of money that could be earned at different rates.

Students will be able to:

Explain what is simple interest and compound interest
Compare the difference in growth of an investment when using simple vs. compound interest
Calculate simple interest and compound interest earnings year over year

Many of us use the "Tale of Two Investors" (A starts early and stops whereas B starts later and continues for many more years, but typically A still ends up with more in the account due to the power of compounding interest) in Personal Finance. This interactive spreadsheet allows students the opportunity to experiment with feasible numbers they could contribute annually to see what different skipping "just a couple" years of investing earlier in their career could do.

Students will be able to:

Explain the difference between saving and investing
Explain the difference between simple interest and compound interest
Calculate compound interest using an online compound interest calculator