The Mathematics Behind a Structured Savings Plan

Make your money work for you. Future economists learn how to apply sigma notation and how to calculate the sum of a finite geometric series. The skill is essential in determining the future value of a structured savings plan with recurring payments.

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CCSS: Designed
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Instructional Ideas
  • Team up with a business teacher for the lesson
  • Have the class research different banking options in the area
Classroom Considerations
  • Teacher guide suggests splitting the lesson over two days
Pros
  • Introduces adolescents to important financial instruments, such as annuities
  • Includes problem set with both purely mathematical problems (practice using sigma notation) and real-world financial problems
Cons
  • None