CEP Lesson Plan Form

Teacher: Heidi Borrego

Date: 4/21/16
School: RMHS
Financial Life Management

Grade Level: 11-12

Content Area:

Title: Compounding Interest and Investing

#:_4_ of _5_

Content Standard(s) addressed by this lesson:

directly from the standard)
COSE.11.01.b

Lesson

(Write Content Standards

(LFMGT) Document realistic long and short-term goals.

COSE.12.03.b
(LFMGT) Apply management principles to individual and family
financial practices.
COSE.15
(LFMGT) Integrate knowledge, skills and practices needed for a career
in consumer services.
COSE.15.01 (LFMGT) Analyze factors in developing a long-term financial
management plan.
COSE.15.01.d
alternatives.

(LFMGT) Compare investment and savings

Evidence Outcomes: (Learning Targets/Objectives)

Every student will be able to: (Create your own lesson objectives from the
standard, follow the ABCD format, using student voice)
Students will analyze how compound interest works and the benefits of it.
Students will analyze the purpose of investing and different ways to
invest.
Students will develop their own personal long-term financial goals and
evaluate how to meet those goals.
List of Assessments: (Write the number of the learning target associated with
each assessment)

Compounding interest activity

Invest in your Future Worksheet

List of Significant Vocabulary: (List the significant vocabulary words and

definitions for this lesson)

Compound interest- interest calculated on the initial principle as well as the

interest accumulated.
Dividends- your share of the profits from a company that you loan money to.

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Municipal Bonds- a federally tax free investment.

Mutual Funds- owning shares of a large group of investments managed by a
professional.

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Planned Lesson Activities

Name and Purpose of Lesson
Should be a creative title for you and the students
to associate with the activity. Think of the purpose
as the mini-rationale for what you are trying to
accomplish through this lesson.
Approx. Time and Materials/Procedures
How long do you expect the activity to last and
what materials will you need? What do you need to
collect, prepare, reserve, set-up, etc. ahead of
time?

Compounding Interest and Investing- This lesson teaches

students about the different types of investing options that
range from low risk to high risk. It also teaches students about
how compound interest works and why it is beneficial.

Pre-Assessment
How will you pre-assess students knowledge of
the topic to be covered? Describe both formal and
informal ways you will assess their knowledge

Ask what students think compound interest is and have them

write their answer down on a piece of paper. Once they have
had a minute or two to think about it have some students
share their thoughts. There is a good chance that most
students havent heard of compound interest before so their
answers might be very creative.
Once you have discussed what their thoughts on compound
interest are, watch the video on compound interest that is
linked to the title on the PowerPoint slide. As everyone is
watching the video ask your two most trustworthy students if
one will be the store keeper and one will be the banker.

Anticipatory
Set/Focus/Hook/Engagement/Motivation/Intro
duction
The hook grabs students attention and engages
them from the start. These are actions and
statements by the teacher to relate the
experiences of the students to the objectives of
the lesson and to put students into a receptive
frame of mind.
To focus student attention on the lesson.
To create an organizing framework for the

90 minutes
Fake money
A box or container for a bank
A table to set up your shop
Prizes for students to buy at your shop ranging in
desirability
Investing PowerPoint
A trustworthy student for your banker and one for your
shop keeper
Invest in your future worksheet

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ideas, principles, or information that is to
follow (advanced organizers)
An anticipatory set is used any time a different
activity or new concept is to be introduced.
Procedures/Instructional Input/Learning
Chunks/Scaffolding for Learning (this is the
largest part of your lesson plan)
(Include a play-by-play account of what will happen
in the class from the minute students arrive to the
minute they leave your classroom. Indicate the
length of each segment of the lesson. List actual
minutes.)
Include the following components in scripted
format:
-Teacher input-what you will share (lecture outline,
notes of interest, facts, vocabulary, description of
activities, etc.)
-Modeling (demonstrations, stories, examples,
etc.)
-questioning strategies (what questions will you
ask to CSU)
-guided/unguided:
-whole-class practice
-group practice
-individual practice
-check for understanding
-other (FCCLA, FFA, etc. connection)

Closure/Conclusion/Summary/Adjustments/
Wrap-up/Clean-up
Those actions or statements by a teacher that are

Once the video is done, start into the rest of the PowerPoint
slide. Once you get to the fifth slide you will explain the
compound activity you will be doing in class that day. As
students come in to class at the beginning of the period take
note of the students that come in before the three minute
warning bell to class starting. The students that are there
before the three minute bell are the early investors, the
students that were there between the three minute bell and
the beginning of class bell are the on-time investors, and the
students that get their late are the late investors. The early
investors start out with $60. The on-time investors start out
with $40 and the late investors start with $20. Every 20
minutes the store will open and students can use their money
to purchase items. However, whatever money they have after
they get a chance to buy something at the store I will double. If
the students dont spend any money then they will have more
money to double. The store will contain items that range in
price from $100, $200, $300, and $400. The items can be
things like candy, string cheese, oranges, chips, caparisons,
and even extra credit. Only the early investors will ever be able
to purchase anything in the $400 category. Later in the
PowerPoint it explains the equation for compound interest and
shows that it is not just doubling your money, but we are using
that as an example because its easier. Students will need to
write down the equation for how to compound interest. They
wont have to memorize it for any tests, but they will need it
written down for the worksheet. The PowerPoint also goes over
the concept of the rule of 72. Students will need to write down
that equation as well.
Once you have gone through the whole PowerPoint, students
will get the Invest in your Future worksheet. Once they have
completed the worksheet, each student will write down one

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designed to bring a lesson presentation to an
appropriate conclusion. Used to help students
bring things together in their own minds, to make
sense out of what has just been taught. Any
Questions? No. OK, lets move on is not closure.
Closure is used:
To cue students to the fact that they have
arrived at an important point in the lesson
or the end of a lesson.
To help organize student learning
To help form a coherent picture and to consolidate.
Differentiation/Modifications/Adaptations/Acc
ommodations To modify: If the activity is too
advanced for a child, how will you modify it so that
they can be successful?
To extend: If the activity is too easy for a child,
how will you extend it to develop their emerging
skills?
Assessment/Pre-Post/On-going
How will you know if students met the learning
targets? Review each learning target and
determine the assessment that met that target.
Can the students answer your inquiry questions?
Write a description of what you were looking for in
each assessment.

personal long-term financial goal and evaluate how they will

meet that goal. With the last ten minutes of class students
may use their money to finally shop at the store if they havent
spent their money yet.

Students may work with a partner on the worksheet if the

math is too challenging. Since students dont need to have it
memorized for a test they may work with someone that might
understand the equations better if math is not their thing.

The pre-assessment of having them guess what compound

interest is and then having them answer it at the end of the
class will help me to assess if they have learned the
importance of it. The worksheet will also help me to see if the
students understand different investment equations and the
difference between low risk and high risk investments.

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Post Lesson Reflection

1. To what extent were lesson objectives achieved? (Utilize
assessment data to justify your level of achievement)
From the discussion at the end of the class about what compound
interest is and why it is important I could determine that my students
met my first lesson objective. Through discussion that happened while
we went through the PowerPoint presentation I determined that
students could tell me the purpose of different types of investing and
they could tell me what type of investing they would be most
comfortable with. The goals my students turned in let me know that
they understood my second lesson objective. All of my objectives were
met in this lesson, but it is hard to determine how long they will retain
the information.
2. What changes, omissions, or additions to the lesson would
you make if you were to teach again?
Next time I teach this lesson I will create a note tracker for the
students to use as I go through the PowerPoint. I believe that would
help the students retain the information longer and give them an idea
of what the most important information is. The compound interest
activity went very well and the students enjoyed it. Next time I will
print out more money though. We had to keep having students buy
things and then take that money to give to the people that hadnt had
their money doubled yet.
3. What do you envision for the next lesson? (Continued practice,
reteach content, etc.)
For the next lesson we will start reviewing for the quiz and then have
the quiz the same day. The students will need to bring all of their notes
that they have taken in the previous lessons.

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Investing In Your Future

EXERCISE: You have been given the option to invest in either a safe
investment, or one that has more risk. The safe investment will give you a
return of 2%. The risky investment's return will vary. Finish filling in the
following table, and answer the questions that follow:
SAFE INVESTMENT: Here is the return for the safe investment. It will
always give the same return.
Money to
Invest
$1,000.00

Return
2%

Gain(Loss
)
$20.00

Total
$1,020.00

RISKY INVESTMENT: The risky investment's return will vary, and may be
one of the following. Finish filling in the following table. Round each
calculation to the nearest penny.
Money to
Invest

Retur
n

Gain/Loss

1.

$1,000.00

5% $_________

2.

$1,000.00

26% $_________

3.

$1,000.00

5% $_________

4.

$1,000.00

27% $_________

5.

$1,000.00

-15% $_________

6.

$1,000.00

-6% $_________

Total
$___________
_
$___________
_
$___________
_
$___________
_
$___________
_
$___________
_

Should you choose the safe investment or the risky investment? Why?

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DIRECTIONS: Using the Rule of 72, answer the following questions. Please
show your work.
1. Doug invested $2,500 into a Certificate of Deposit earning 6.5% interest.
How long will it take to double Dougs investment?

2. The average Stock Market return since 1926 has been 11%. According to
the Rule of 72, how often will an individuals investment double in that time?

3. Jessica has a balance of $2,200 on her credit card with an 18% interest
rate. Her credit card company doesnt require a minimum payment on the
balance (unheard of) and does not assess any late charges (also unheard of).
If Jessica chooses not to make any payments on her outstanding balance,
how long will it take for her balance to double?

Directions: Using compound interest, answer the following questions.

4. You invest $1,900 at 4% and its compounded semi annually for 3 years.
How much will your $1,900 be worth in 3 years?

5. Your 3 year investment of $20,000 received 5.2% interested compounded

semi annually. What is your total return?

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6. Your $440 gets 5.8% compounded annually for 8 years. What will your
$440. be worth in 8 years?

Answer Key
1.$1,000.00

5%

$50.00

$1,050.00

2.$1,000.00

26%

$260.00

$1,260.00

3.$1,000.00

5%

$50.00

$1,050.00

4.$1,000.00

27%

$270.00

$1,270.00

5.$1,000.00

-15% ($150.00)

$850.00

6.$1,000.00

-6%

$940.00

($60.00)

1. 72/6.5 = 11 YEARS
2. 72/11 = 6.5 YEARS
3. 72 / 18 = 4 YEARS
4. $2,139.71
5. $23,329.97
6. $690.78

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