Math-in-CTE Lesson Plan Template
Lesson Title: Can it be that it was all so simple?
Lesson #
Author(s):
Jennifer Chatmon
E-mail Address(es):
j.chatmon@eastorange.k12.nj.us
Phone Number(s):
973 420 7396
Nadine Elvie
862 684 2882
nadine.mingoes-elvie@eastorange.k12.nj.us
Occupational Area: Finance
CTE Concept(s): Simple and Compound Interest
Math Concepts: Whole numbers, fractions, decimals, percents, ratio and proportion, algebra, statistics, logic
Lesson Objective:
SWBAT to compute and compare simple vs. compound interest investment options
Supplies Needed:
Calculator(s), writing tool(s), paper, white, black, or SMART board (or equivalent to showcase student work)
THE "7 ELEMENTS"
TEACHER NOTES
(and answer key)
1. Introduce the CTE lesson.
Today, we are going to talk about choices you will be faced with when it
comes to investing money. Each you will receive $500 with which you
will have to decide how to invest. But before you make your decision,
you need to know which choice, simple interest or compound interest,
will maximize the return on your investment
Ask: What does is mean to invest?
Based on student responses, the teacher will write an agreed upon
definition for investing. The definition should address the following:
(Investing) money put to use to gain a profitable return
Students will offer their opinions
Ask: What is interest?
Based on student responses, the teacher will write an agreed upon
definition for interest. The definition should address the following:
Interest is money added when you invest
Ask: What role does interest play when investing?
Teacher will guide student responses toward the result that interest
can add additional money to the original amount and introduce
vocabulary: PRINCIPAL
Principal – amount of your initial investment
Teacher will also introduce vocabulary: SIMPLE INTEREST,
COMPOUND INTEREST and provide students with a verbal
difference between the two
Definitions should address the following:
Simple Interest – money earned on your initial investment
Compound Interest – money earned on your initial investment and
previous earnings
Ask: Based on just the definition between simple and compound Teacher should have students jot down their answer to the questions
interest, jot down in your notebooks which type of interest you would in their notebooks to be revisited at the end of the lesson as a
choose for your $500 investment
closing activity
2. Assess students’ math awareness as it relates to the CTE
lesson.
Students should respond with: “whole numbers, fractions, decimals,
Ask: When it comes to interest and investing, what kind of math do you and percents”. In the event that they do not, the teacher should
think is involved?
introduce these terms and write them on the board and explain to
the students that each of these terms will come into play when
dealing with saving and investing
Using student responses teachers will write these definitions on the
Ask the students for a definition/explanation of each of the related math board to use as a reference and have students write them in their
terms (Whole numbers, fractions, decimals, and percents)
notebooks as well
Ask the students how to calculate interest earned on a given amount of
money
Teacher will assist students with developing the appropriate formulas
used to compute simple and compound interest:
(SIMPLE INTEREST) I = P x R x T
Where I = Interest earned, P = Principal, R = Interest rate, T =
Length of time the money will be invested
(COMPOUND INTEREST) A = P (1 + r) n
Where A = New principal (compounded amount), P = Principal,
r = Interest rate, n = Length of time
3. Work through the math example embedded in the CTE lesson.
Both vocabulary and formulas will remain displayed on the board
This is a guided practice
Now it’s time to choose how you are going to invest your $500. So we Students will use I = P x R x T to compute with the given variables
have to compute both the simple interest and compound interest
I = 500 x .0675 x 3
options. Let’s start with simple interest.
Using the simple interest formula, compute how much interest you
would earn where:
P = $500
R = 6.75%
T = 3 years
Ask: How much interest did you earn?
Interest earned = 101.25
Ask: What then is your resulting amount of money using simple 500 + 101.25 = 601.25
interest?
Now, let’s calculate what your investment would look like using
Students will use A = P (1 + r) n to compute with the given variables
compound interest where:
P = $500
A = 500 (1 + .0675) 3
r = 6.75%
A = 500 (1.216)
n = 3 years
A = 608
Ask: How much interest did you earn?
Interest earned = 108
Ask: What is your resulting money using compound interest?
608
4. Work through related, contextual math-in-CTE examples.
Both vocabulary and formulas will remain displayed on the board
This is a guided practice
Now that you understand how to calculate simple and compound
interest, let’s try additional problems with different amounts.
This time, instead of nice round numbers let’s use the following
amounts to compute simple interest where:
Students will use I = P x R x T to compute with the given variables
P = 2376.40
I = 2376.40 x .0525 x 3.5
R = 5.25%
T = 42 months
Ask: How much interest did you earn?
Interest earned = 436.66
Ask: What then is your resulting amount of money using simple
2376.40 + 436.66 = 2813.06
interest?
Now, let’s calculate what your investment would look like using
compound interest where:
P = 2376.40
r = 5.25%
n = 42 months
Students will use A = P (1 + r) n to compute with the given variables
A = 2376.4 (1 + .0525) 3.5
A = 2376.4 (1.196)
A = 2842.45
Ask: How much interest did you earn?
Interest earned = 466.05
Ask: What then is your resulting amount of money using simple
2842.45
interest?
5. Work through traditional math examples.
Both vocabulary and formulas will remain displayed on the board
This is a guided practice
Now that you understand how to calculate simple and compound
interest, let’s take a look at percentages from a different perspective
When solving for percents, use the following guidelines to make your
equation:
“What” = x (unknown)
“Percent” =
/100 (divide by 100)
“Of” = multiplication
“Is” = equal sign
Use the following information for your equation:
Students will utilize teacher provided guidelines to make the
equation with the given variables:
If you earned $50 doing the yard for your mother, and you gave $10 to
X / 100 (50) = 10
your younger sibling, what percent of your earnings did you give away?
X = 20%
If you continued to earn $50/month for a period of five months, and 50(5) = 250
continued to give your sibling $10 every month, how much money
10(5) = 50
would you have left after five months? What percent of your total
250 – 50 = 200
earnings did you give away?
X / 100 (250) = 50
X = 20%
Teacher can use this example as a teachable moment to express to
the students the importance of reading through the question, as this
particular question can be solved with reason and doesn’t require
additional calculations. Questions like these often appear on
standardized tests.
6. Students demonstrate their understanding.
Arrange students in groups and each group will have to solve one
problem that is written on the board and will be used to demonstrate
their understanding. Each group member will have to solve one section
of the problem, but the group should select a “captain” to represent
them and write the group’s answers on the board.
Using the following variables, calculate both simple and compound
interest for both lengths of time. The “captain” will select which team
members will compute which type of interest.
2 year time length:
P = 23,500
Simple interest I = P x R x T
r = 7.89%
I = 23,500 x .0789 X 2
T or n = 2 years and 5 years
Ask: How much interest did you earn in the two year time period using
simple interest?
I = 3,708.30
$27,208.30
Ask: What then is your resulting amount of money using simple
interest?
Compound interest
A = P (1 + r) n
A = 23,500 (1 + .0789) 2
A = 23,500(1.164)
A = 27,354.59
Ask: How much interest did you earn in the two year time period using
compound interest?
Interest earned = 3854.59
Ask: What then is your resulting amount of money using compound
27,354.59
interest?
Simple interest I = P x R x T
I = 23, 500 x .0789 x 5
Ask: How much interest did you earn in the five year time period using
simple interest?
Ask: What then is your resulting amount of money using simple
interest?
I = 9270.75
32,770.75
Compound interest A = P (1 + r) n
A = 23,500 (1 + .0789) 5
A = 23,500 (1.4618)
A = 34,353.72
Ask: How much interest did you earn in the five year time period using
Interest earned = 10,853.72
compound interest?
34,353.72
Ask: What then is your resulting amount of money using compound
interest?
7. Formal assessment.
See attached teacher generated worksheet and answer key
8. CCCS: (9.2.4.A2, .2.4.A.3)