Mathematics of Finance Version: 2011-2012

Scholastic Area that Course Is Active In: Mathematics

Strand: Number and Operations

Students will use fractions, percents, and ratios to solve problems related to stock transactions, credit cards, taxes, budgets, automobile purchases, fuel economy, Social Security, Medicare, retirement planning, checking and saving accounts and other related finance applications.
Element: MMFN1.a
Apply percent increase and decrease.
Element: MMFN1.b
Apply ratios and proportions.

Strand: Algebra

Students will use basic functions to solve and model problems related to stock transactions, banking and credit, employment and taxes, rent and mortgages, retirement planning, and other related finance applications.
Element: MMFA1.a
Apply linear, quadratic, and cubic functions.
Element: MMFA.b
Apply rational and square root functions.
Element: MMFA1.c
Apply greatest integer and piecewise functions.
Element: MMFA1.d
Apply exponential and logarithmic functions.

Students will understand the characteristics of these functions as they relate to financial situations.
Element: MMFA2.s
Understand domain and range when limited to a problem situation.
Element: MMFA2.b
Understand and apply limits as end behavior of modeling functions.

Students will use formulas to investigate investments in banking and retirement planning.
Element: MMFA3.a
Apply simple and compound interest formulas.
Element: MMFA3.b
Apply future and present value formulas.

Students will understand and use matrices to represent data and solve banking and retirement planning problems.

Strand: Data Analysis and Probability

Students will use measures of central tendency to investigate data found in the stock market, retirement planning, transportation, budgeting, and home rental or ownership.

Students will use data displays including bar graphs, line graphs, stock bar charts, candlestick charts, box and whisker plots, stem and leaf plots, circle graphs, and scatterplots to recognize and interpret trends related to the stock market, retirement planning, insurance, car purchasing, and home rental or ownership.

Students will use linear, quadratic, and cubic regressions as well as the correlation coefficient to move supply and demand, revenue, profit, and other financial problem situations.

Students will use probability, the Monte Carlo method, and expected value to model and predict outcomes related to the stock market, retirement planning, insurance, and investing.

Strand: Geometry

MMFG1. Students will apply the concepts of area, volume, scale factors, and scale drawings to planning for housing.

Students will apply the distance formula.

Students will apply the properties of angles and segments in circles.

Strand: Process Standards

Students will solve problems (using appropriate technology).
Element: MMFP1.a
Build new mathematical knowledge through problem solving.
Element: MMFP1.b
Solve problems that arise in mathematics and in other contexts.
Element: MMFP1.c
Apply and adapt a variety of appropriate strategies to solve problems.
Element: MMFP1.d
Monitor and reflect on the process of mathematical problem solving.

Students will reason and evaluate mathematical arguments.
Element: MMFP2.a
Recognize reasoning and proof as fundamental aspects of mathematics.
Element: MMFP2.b
Make and investigate mathematical conjecture.
Element: MMFP2.c
Develop and evaluate mathematical arguments and proofs.
Element: MMFP2.d
Select and use various types of reasoning and methods of proof.

Organize and consolidate their mathematical thinking through communication.
Element: MMFP3.a
Organize and consolidate their mathematical thinking through communication.
Element: MMFP3.b
Communicate their mathematical thinking coherently and clearly to peers, teachers, and others.
Element: MMFP3.c
Analyze and evaluate the mathematical thinking and strategies of others.
Element: MMFP3.d
Use the language of mathematics to express mathematical ideas precisely.

Students will make connections among mathematical ideas and to other disciplines.
Element: MMFP4.a
Recognize and use connections among mathematical ideas.
Element: MMFP4.b
Understand how mathematical ideas interconnect and build on one another to produce a coherent whole.
Element: MMFP4.c
Recognize and apply mathematics in contexts outside of mathematics.

Students will represent mathematics in multiple ways.
Element: MMFP5.a
Create and use representations to organize, record, and communicate mathematical ideas.
Element: MMFP5.b
Select, apply, and translate among mathematical representations to solve problems.
Element: MMFP5.c
Use representations to model and interpret physical, social, and mathematical phenomena.

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