
06439644
j
2015d.00901
Davis, Marsh
Vest, Floyd
Investment choices.
Consortium 106, 11 p., pullout section (2014).
2014
COMAP (Consortium for Mathematics and Its Applications), Bedford, MA
EN
M30
U70
F80
I20
mathematical applications
financial mathematics
investment
gold
inflation
taxes
graphics calculators
spread sheets
student activities
percentages
exponential functions
logarithms
stock investments
treasury bills
internet search
information retrieval
general compound interest formula
From the text: In this pullout, students consider three types of investments: currencybased, nonproductive assets, and productive assets. In Activity 1, students determine annual rates of the return on gold investments (nonproductive asset) and then adjust those rates for inflation and taxes. In Activity 2, students calculate the percentage increase and/or decrease in gold prices over a variety of time periods. The concept of investment bubbles is introduced. In Activity 3, students compare growth in S\&P 500 stocks (productiveassets investments) to treasury bills (currencybased investments). Activity 4 is an exercise set in which students can apply what they have learned in Activities 13. Students need to be able to calculate percentages. They should have some familiarity with compound interest formulas (or you will need to introduce the topic). Given an equation in which one variable is expressed in terms of several others, students should be able to solve for the other variables separately. This will require taking roots and logarithms. Students will need to fit an exponential function to data. Instructions for using ExpReg on a TI84 or Trendline in Excel are provided in the Lesson Notes for Activity 2.