Business Management and Administration: Compound Interest – A Millionaire’s Best Friend
Compound Interest – A Millionaire’s Best Friend is a sample Business lesson created by a CTE and math teacher team from Missouri. The lesson’s objective is help students understand the effects of compound interest over time by comparing a variety of investments and calculating compound interest using various rates of return. The CTE concepts taught in this lesson are compound interest, types of investments, opportunity cost, and diversification. Math concepts include percentages, ratio, comparing, exponential functions, graphing, rounding, order of operations, estimating, formulas, and charting.
Math-enhanced CTE lessons are written only after CTE and math teacher teams work together to develop a curriculum map that identifies the CTE concepts and intersecting math concepts (including the Common Core math standards) that are naturally embedded within the CTE curriculum. Once the map is complete, the CTE and math teacher teams, working in communities of practice, select from within it one or more CTE concepts and related math concepts to develop into CTE lesson plans. Math-in-CTE’s seven-element pedagogic framework (PDF) guides this lesson development process. When the lessons are complete, the CTE teachers create scope and sequence plans for integrating the lessons into their courses.