35
Junior high school
A Question of Interest
• • • • • • • • • • • Using the activity in the classroom • • • • • • • • • • •
This activity is probably best introduced orally. After a discussion about investments and interest
rates, the teacher can use the sequence function of the calculator to generate sequences showing
how an initial capital sum grows for a fixed interest rate. Students can be asked to find the annual
interest rate that ensures their money is doubled in
1
0 years.
Students can then investigate the annual interest rates that would double their money for different
numbers of years. These interest rates could be plotted on a graph.
5 years
1
4.9%
1
0 years
7.2%
1
5 years
4.7%
20 years
3.6%
25 years
2.8%
• • • • • • • • • • • • • • • Points for students to discuss • • • • • • • • • • • • • •
It may be useful to show students how to generate sequences on the calculator.
Further Ideas
• Investigate interest rates that would triple an investment, or...
• From
1
970 to
1
980 prices tripled. What was the average rate of inflation?
Using the % calculation key: After one year, you should have 0.
1
% of your
$
1
00.
1
00
0.
1
You now have $
1
00.
1
0.
After two years, you have 0.
1
% more.
0.
1
After three years...
After
1
0 years...
You have approximately $
1
0
1
.
ANS+0.1%
DEG
ANS+0.1%
DEG
ANS+0.1%
DEG
100+0.1%
DEG
Summary of Contents for EL-531RH
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