1. BLACK AND GOLD DAY!! Please do the following: Pick up the worksheet from the front table. HW #9 : Practice Test Updates: 4.1-4.3, 4.7 TEST 12/ 16 and 12/17

2. Electronics No warnings. It’s out of control. Out of My Sight, Out of Your Sight, or I take them until the end of class.

3. Only 3 more FLEX days left until the end of the semester!

4. Agenda 1.Review HW 2.4.7: Financial Models 3.Credit Card Project 4.Presentations ( If time) 5.Reflection

5. Review HW

6. Learning Target I can: ①Solve problems involving compound interest

7. Calculator Expectations The next week we are going to use calculators. The resource manager is going to come up and get the calcs. – TABLE #1 ( CALCS #1-4) – TABLE #2 ( CALCS 5- 8) – TABLE #3 ( CALCS 9-12) – TABLE #4 ( CALCS 13-16) – TABLE #5 ( CALCS 17-20) – TABLE #6 ( CALCS 21-24) – TABLE #7 ( CALCS 25-28) 5 minutes before the bell rings, the resources manager is going to put the calcs away in the designated spot!!! NO ONE LEAVES MY CLASS UNTIL ALL CALCULATORS ARE PUT AWAY!!!!

8. Many financial models use exponential functions. Let’s apply what we have learned to what everyone loves: $$$$$$$$$$$$$$$ There will be a lot of formulas. I am not asking you to memorize them. I am, however, asking you to know which one to use and how to use it!

9. 4.7: Financial Models Compound Interest o A = final amount ($) o P = initial amount or principal o r = annual interest rate(%) o n = number of times the interest is compounded per year o t = time in years

10. 4.7: Financial Models Common Compounding Periods o n is the number of times the interest is compounded per year  annually, n =  semiannually, n =  monthly, n =  quarterly, n =  daily, n =

11. Example 1 Example 1: Find the Future Value of a Lump Sum of Money Use the compound interest formula to calculate the amount of money you would have after 5 year if you invest $300 at an annual rate of 4.3% compounded: (a) Annually(c) Monthly (b) Quarterly(d) Daily (e)What do you notice as you increase n? Hint: When putting this in your calculator remember parentheses!!!

12. 4.7: Financial Models Assume that you have $1 and it earns 100% annual interest. This table shows the growth factor for each of the compounding frequencies listed.

13. 4.7: Financial Models Continuously Compounded Interest A = Pe rt o A = final amount ($) o P = initial amount (principal) o r = annual interest rate(%) o t = time in years

14. 4.7: Financial Models Continuously Compounded Interest o A = Pe rt, where A is the total amount, P is the principal (initial amount), r is the annual interest rate (%), and t is the time in years. o Continuously Compounded interest is when interest (a fee) is added to a deposit or loan, so that, from that moment on, the interest that has been added also earns interest. o It is different from the compounded interest formula

15. Example 2 Example 2: Continuous Compounding How much money will your credit card have after loaning you $5000 at 11.9% interest compounded continuously for 4 years? How much of that is just interest?

16. Example 3 Congrats! You just won the lottery! You are smart and going to invest your money for 30 years. However, you are debating on whether to invest your $50,000 winnings into a money market that earns 8.5% interest compounded quarterly or into a savings account that earns 7.9% interest compounded continuously. Which option would you choose and why?

17. Whiteboards Compare the balance after 25 years of a $10,000 investment earning 6.75% interest compounded continuously to the same investment semiannually. Which option would you choose?

18. Financial Models Table- Talk: 1)Discuss the difference between interest compounded continuously and interest compounded monthly. 2)If you have an investment compounded daily OR you have an investment compounded continuously, does it matter which formula that you use?

19. Group Work! 1) You are saving for college! You invested $2000 today and left it in your money market account until December 2020. How much money would you have if the annual rate is 5% and it is compounded monthly? 2) Andrew invested $500 to save for a new car. If he left the money in an account which compounds continuously at 5.25%, how much would he have in 20 years?

20. Creation! 1)Take out a half sheet of binder paper. 2)Write your name & table # in the upper right hand corner. 3)Create your own word problem AND solve it! – compound interest/ compound continuously The most creative will be used on the test, and you will get one point extra credit on the test!

21. Credit Card Project Who has a credit card? http://www.npr.org/player/v2/mediaPlayer.html?acti on=1&t=1&islist=false&id=9156929&m=9156932 (0 – 4:00)

22. Credit Card Project https://creditcards.chase.com/a1/southwest/25kPre mierNonAEP?CELL=6RHZ

23. Credit Card Project

26. One person in each group must have a phone to do some research. If you want, you can also use an Ipad. On the top of your paper you are going to write down each persons name and their role.

27. Credit Card Project Roles: Researcher: This person will research the different credit cards and APR. Only one person should be on his/her phone. Choose the highest APR % in the range. Calculator: Will calculate all the interests Scribe: Write down/ answer the questions on the worksheet Presenter: This person will present their findings to the class at the end of the period or during the next class period.

28. Presenting You will come up and talk about the credit cards that you found and their APR score. Which credit card do you prefer and why? Show your graph and talk about the interest that you accumulated over time. Make eye contact with the audience and speak in a loud voice. Be entertaining!

29. Reflection Take out a separate sheet of paper and answer the following questions: ①What was your take-away from this? ②When you look into credit cards, what are you going to look for now? ③Was this project useful for your future? Why or why not? ④What should Ms. Huls change for next year with this project?