Some Math Behind M.C. Escher's Circle Limit Patterns - University of
Math Behind the Market
29
Math Behind the Market Teaching Math Through the Stock Market Game
description
Math Behind the Market. Teaching Math Through the Stock Market Game. By Mindy Robison. [email protected] Midvale Middle School . Accessing Lesson Plans. www.stockmarketgame.org Login In the Classroom Publications Show All Publications Listed by Name (Next) - PowerPoint PPT Presentation
Transcript of Math Behind the Market
Math Behind the Market
Math Behind the MarketTeaching Math Through the Stock Market Game
By Mindy [email protected]
Midvale Middle School Accessing Lesson Planswww.stockmarketgame.orgLoginIn the ClassroomPublicationsShow All Publications Listed by Name (Next)Math Behind the Market
3Table of Contents
Math Strands
Lesson Plan
Sample Lesson PlansBefore You InvestWhat is a CompanyPage 2: Thinking AlgebraicallyPercentagesPatternsPage 3: Interpreting StatisticsOrderingPatternsPage 10: Tackling Complex ProblemsRatiosDivision
Sample Lesson PlansBefore You InvestWhat is a StockPage 12: Thinking AlgebraicallyIntegersAddition/Subtraction/MultiplicationPage 15: Communicating Quantitative InformationUnderstanding TablesGraphing
Additional InformationDont have to do all the lessonsEnrichments lessonsAnswer KeysMatch to State CoreFeel free to adapt and change
More Resourceshttp://my.uen.org/myuen/69301/2
This is my UEN site that has the following worksheets available.Understanding Stock PricesTarget (TGT)Walmart (WMT)Last Trade46.0249.08Trade Time10/2/0910/2/09Change .55 (1.18%) .08 (.16%)Previous Close46.5749.00Open46.0348.89Days Range45.73-46.5448.84-49.3452 wk Range25.00-49.2046.25-60.22Volume6,094,62515,094,001Avg Vol (3m)8,358,32017,048,100Market Cap:34.60 B189.29BP/E 16.6014.39EPS 2.773.41Div & Yield.68 (1.5%)1.09 (2.2%)
What Questions?Understanding Basic ConceptsPercentage Increase/DecreaseDifferencesPrice to Earnings RatioWhich Stock would you buy?
Another ResourceGo to Financeintheclassroom.orgGrouped into math lesson plans and activities by grade.Lessons are simple, easy to teach, and meet the state core.
http://financeintheclassroom.org/
Stock Purchases & Commissionhttp://www.uen.org/Lessonplan/preview.cgi?LPid=253757th Grade MathematicsIncludes:Power PointWorksheetAnswer Key
Determining Stock CostLets assume you have decided to buy Hershey (HSY). The price is $39.91. You decide you want to purchase 100 shares of the company.To find out how much the stock will cost you simply multiply the price ($39.91) by the number of shares (100) and you get: 39.91 100 = $3,991.00, but dont forget about the commission!
Examples:You want to buy 500 shares of Ford, at the current trading price of $12.41 per share.
Cost of the Stocks:500 12.41 = $6,205.00
Commission:.02 6,205.00 = $124.10
Total Price: 6,205.00 + 124.10 = $6,329.10
ExtensionsWhat would happen to the total cost of the transaction if the 2% commission: Went up? The total cost would be more.Went down?The total cost would be less.When investing your own money do you want high or low commissions?LOW the transaction will cost less money.
Price To Earnings Ratiohttp://www.uen.org/Lessonplan/preview.cgi?LPid=252907th Grade MathematicsIncludes the following:Power PointWorksheetAnswer KeyPrice To Earnings Ratio
CompanySymbolEarnings Per SharePrice #1Price #2Price #3Price #4Apple: AAPL$5.72$78.20$115.23$145.67$190.5578.20 5.72= 13.67115.23 5.72= 20.15145.67 5.72=25.47190.55 5.72=33.31 What happens to the Price to Earnings Ratios if:The Stock Price Goes Higher? The Stock Price Goes Lower?The Earnings Go Higher?The Earnings Go Lower?What Else?
Exponential Growthhttp://www.uen.org/Lessonplan/preview.cgi?LPid=2462610th Grade MathematicsIncludes:Power PointWorksheets (Growth & Decay)Answer KeysExponential Growth Interest Rate2 yrs compounded annually2 yrs compounded continuously20 yrscompounded monthly20 yrscompounded daily2%Formula: P(1+ r)t
$5202.00Formula: Pert
$5204.05
Formula: P(1+r/n)nt
$7456.64
Formula: P(1+r/n)nt
$7459.04
Formula: A = P (1 + r/n)ntP = Principalr = Annual Raten = # of times compounded per yeart = Number of years
Assume you have $5,000 to invest.What Else?Talk about what happens when the interest rate changes.Discuss the differences between the ways the interest is figured.Help students realize how important time is to the equation.
Exponential DecayDepreciationRateValue after 2 yearsValue after 5 yearsValue after 8 yearsValue after 10 years10%
$16,200$11,809.80$8609.34$6973.57Assume the car was purchased for $20,000Formula: y = a (1 r)ta = initial amountr = percent decreaset = Number of years
What Else?Talk about what happens when the depreciation rate changes.Talk about the values you will get 20 or 30 years out does it make sense?Discuss the pros and cons of buying new or used cars.
The Stock Market Game Studyhttp://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p119852.pdfhttp://www.finrafoundation.org/web/groups/foundation/@foundation/documents/foundation/p119855.pdf
The Stock Market Game StudyStudents who played the game:Scored Significantly Higher on Mathematics Test Scored Significantly Higher on Financial Literacy TestsScore higher regardless of teacher implementation
The Stock Market Game StudyTeachersFinancial practices were influencedSet financial goalsAnalyzed their risk toleranceRead the business section of the newspaperWatched financial programs
Resourceswww.stockmarketgame.orgwww.financeintheclassroom.orghttp://robisonlovesmath.wikispaces.com/My email: [email protected]
