Compound Interest

2021.04.08 11:40 am - 12:21 pm

Teaching point: How can we use an exponential function to model compound interest?

Do Now


Would you rather have $1,000,000 or start with a penny and double your money every day for 30 days?

2021.04.05 Do Now

Agenda

Do Now (5 - 10 minutes)

Compound Interest Notes (10 minutes)

Math: Active vs. Passive Funds (20 - 25 minutes)

Closure and Questions (5 minutes)

Active vs. Passive Funds

Let’s review 4 types of funds

2021.04.06 Funds Notes

Math: Active Vs. Passive Funds

It’s important to note that some funds have higher fees because they are managed by a professional called an investment manager. Let’s take a closer look at how these fees compare across different types of funds in this activity. Follow the directions on the worksheet in GC to complete the activity.


Actively managed fund: investment manager picks and chooses which companies will be in the fund

Passively managed fund: companies in a fund that automatically aligns closely with the market (for example, S&P 500)