Financial Literacy (Optional/Applied Topic)
Main Topics
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Simple and compound interest
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Future Value (FV) and Present Value (PV)
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Loans, investments, and annuities
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Regular payments and amortization schedules
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Comparing financial options (interest rates, terms)
Key Skills
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Use compound interest formulas accurately
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Model financial growth and debt reduction
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Interpret realistic financial scenarios with math
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Compare loan and investment plans logically
Summary
Some classes include a short applied unit on financial mathematics—covering simple and compound interest, loans, and investments. Students learn how exponential growth and decay apply to real-world finance. This connects mathematical concepts to personal decision-making and helps students understand the value of mathematical thinking in everyday life.
Suggested Activities
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Create a personal savings or loan plan scenario
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Spreadsheet simulation of compound interest
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Group project: “Which investment is better?”
