Module 1

 

Have you ever heard the expressions mentioned in the cartoon? Which statements ring true to you? These common expressions are evidence that a lot of what happens in society is based on the exchange of money.

 

Whether you are buying milk, paying off your student loan, or calculating the mortgage payments on your first home, you need money to meet your goals. While there is more to life than earning money, earning money is a major objective for most people from about age 20 to age 65. The focus on money can become even more important after retirement.

 

To meet your goals you need to be able to manage your finances wisely. Simply getting a job and saving your money in a piggy bank or shoebox may not be enough for you to realize your dreams. Financial advisors suggest you make your money work for you by earning interest.

 

You can manage your money wisely if you understand the mathematics of sequences and series. If you do, you will understand that there is a difference between how much your investment can earn with compound interest compared to simple interest. Not only will you be able to predict how much you will earn on your next paycheque, but you will also be able to calculate your future earnings.

 

In this module you will study the math behind your finances. You will explore arithmetic and geometric sequences and series. You will study their properties, and you will derive formulas to describe sequences and series. You will solve problems using your new understanding of sequences and series.

 

In this module you will investigate the following questions:

• How can an understanding of sequences and series help you to manage your finances wisely?
  
  
• How are mathematical formulas derived?

To investigate these questions you will focus on the lessons and questions in the table.

 

Lesson	Topic	Lesson Questions
1	Arithmetic Sequences	How can you find any term in an arithmetic sequence?
		How are patterns important in the real world?
2	Applications of Arithmetic Sequences	How are arithmetic sequences related to linear functions?
		How are sequences useful in solving problems?
3	Arithmetic Series	How are arithmetic sequences and arithmetic series similar and different?
		How can you visualize the sum of an arithmetic series?
4	Geometric Sequences	How are arithmetic sequences and geometric sequences similar and different?
		How is compound interest an application of geometric sequences?
5	Geometric Series	In what ways can mathematical formulas be derived?
		How are geometric series used in finance?
6	Infinite Geometric Series	When is it possible to add an infinite number of terms?
		How are infinite sums used in finance?

 

The Module 1 Project will centre on your personal financial goals. Are you planning on going to college or university? Do you have dreams of owning your own home or buying a nice car? Perhaps you are already thinking about how you can prepare financially for an early retirement?

 

Whatever your financial goals, you will have the opportunity in Module 1 to see what it will take to make those dreams come true. The best part is that you will be gathering real data. You will research actual interest rates, go on a real job hunt, draft realistic budgets, and calculate investment values based on your forecasted income and expenses!