We explored mathematical concepts in statistics and calculus in a context of finance. Jennifer Eldred, who is a teacher at Kuna High School, shared some activities that she prepared as part of her master’s thesis at Boise State. The activities are available on her web site:
Today we did two activities. First we worked through an activity that related life insurance and expected value. We found a formula for the value of an investment in terms of the yearly payment amount and the interest rate, using geometric series. We looked at actuarial tables and a lifespan simulator (Years You Have Left to Live, Probably) to get a sense of how long a life insurance policy is likely to take to pay out, and whether that makes it a worthwhile policy for the policyholder, or the insurance company.
Second we worked through an activity that related calculus and debt. Geometric series showed up again!
Photos from the session: