MA19.MM.5

Mathematics (2019) Grade(s): 09-12 - Mathematical Modeling

MA19.MM.5
Explain the relationship between annual percentage yield (APY) and annual percentage rate (APR) as values for $r$ in the formulas $A=P(1+r)^t$ and $A=Pe^{rt}$.

Unpacked Content

Knowledge

Students know:

how to calculate both simple interest and compound interest and straight line depreciation and proportional depreciation.

Skills

Students are able to:

Create tables that compare interest paid/owed on accounts using simple interest and compound interest.
Create tables that compare depreciation on items using straight line depreciation and proportional depreciation.

Understanding

Students understand that:

interest can be calculated in different ways and there are advantages and disadvantages to each method. (earning interest vs. paying interest).
Depreciation can be calculated in different ways and there are advantages and disadvantages to each method.

Vocabulary

Simple Interest
Compound Interest
Straight Line Depreciation
Proportional Depreciation

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