Victoria University

AEG5138 Inclusion & Diversity:

Curriculum Design for Multimodal Learning
Lecturer: Liz White
Two Individual Lesson Plans
Student: Khai Nguyen (4498388)
Overview and aims
Financial mathematics aims to raise awareness of the need for financial
literacy in high schools and to equip teens with the knowledge and skills they
need to make informed financial decisions. In the following two lessons, Year
10 students will investigate the effects of compound interest, derive the
compound interest formula and apply it in a variety of contexts that have
implications for financial planning goal setting, saving, investing, borrowing,
etc.
Year level and topic
Year 10 Financial Mathematics
Connection to the Australian Curriculum
Year 10 - Mathematics
Strand Number and algebra
Sub-strand Money and financial mathematics
Content description
Connect the compound interest formula to repeated applications
of simple interest using appropriate digital technologies
(ACMNA229)
Sub-strand Patterns and algebra
Content description
Substitute values into formulas to determine an unknown
(ACMNA234)
Year 10 Economics (Learning Focus)
Students extend their personal financial literacy skills and
understanding about the role of savings and investment
Cross-curriculum priorities
Sustainability
This learning area provides
o rich, engaging and authentic contexts for developing students
abilities in number and algebra
o opportunities for students to develop the proficiencies of
problem solving and reasoning essential for the exploration of
sustainability issues and their solutions.
Connection to year level Achievement Standards
o By the end of Year 10, students should be able to
recognise the connection between simple and compound
interest.
describe bivariate data where the independent variable is time.
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find unknown values after substitution into formulas.

Lesson 1
Key concepts
The following concepts are covered:
daily rates, weekly rates, monthly rates and annual rates
simple interest and compound interest
using spreadsheets
Learning outcomes
At the end of this lesson, students should be able to
understand how savings can lead to increased wealth and thus
improve their quality of life
comprehend and calculate compound interest, using an online
calculator or repeated simple interest approach method
explain the role of interest in saving, where compound interest can help
us reach our goals faster
Diagnostic assessment
Before this lesson, distribute Financial Maths Capacity Matrix Worksheet to
students (one per student) to assess their prior knowledge.

Year10FinancialMathsCapacityMatrixWorksheet
Name:..
1.Percentageskills
1.1Icanconvertpercentagestodecimalsandfractionsandvice
versa.Example:Write60%asafraction;write0.25asa
percentage.
1.2Icanexpressonequantityasapercentageofanother.Example:
Write40outof50asapercentage.
1.3Icanfindpercentagesofquantities.Example:Calculate25%of
50.
1.4Icanincrease/decreaseamountsbypercentages.Example:
Increase$60by10%;decrease$80by15%.
2.Profitsorlosses
2.1Icancalculateprofitsorlossesusingpercentages.Example:I
boughtacomputerfor$500andsoldittomyfriendfor$600.Was
itaprofitorloss,byhowmuch?Calculatetheprofitorlossasa
percentageofthecostprice?
3Simpleinterest
3.1Icancalculatesimpleinterest.Example:If$2200isborrowed
atarateof5%perannum,calculatetheinterestchargedover10
years.

3.2IcancalculatePrincipal,RateorTimeifenoughinformationis
giventome.Example:Iinvestedanamountofmoneyfor5years
atarateof4.5%perannum,andearnedatotalof$1560ininterest.
HowmuchmoneydidIinvest?
Comments
Studentscanalsousethecommentsinthislistastheirresponsesto
theabovequerieswithorwithouttheirworkingout.Forexample,
A1.1;B1.4;D3.2.
A.Ihaveneverheardofit
B.Ihaveheardofit
C.Icandothiswithhelp
D.Icandothisbymyself
E.Icanexplainittosomeone
Prerequisites
Percentages, decimals, fractions and simple interest.
Resources
o Student activity sheets
o Video Money makes the world go around
(https://www.moneysmart.gov.au/teaching/teachingresources/moneysmart-teaching-videos/money-makes-the-world-goaround)
o ICT based calculator https://www.moneysmart.gov.au/tools-andresources/calculators-and-apps/compound-interest-calculator
Duration: 120 minutes (2 x 60 minute periods)
Location: Classroom
Procedure
Engage (30 minutes)
This phase is to captivate learners attention, stimulate learners interest and
investigate their prior knowledge about the concept
o Begin by showing the 3 minute digital animation Money makes the

world go around
(https://www.moneysmart.gov.au/teaching/teachingresources/moneysmart-teaching-videos/money-makes-the-world-goaround) and lead a class discussion on it to raise awareness of the
need to acquire financial literacy skills.
o Ask students to investigate the following scenario. If necessary, write
the details on the board or use PowerPoint slide(s)
Emily is dreaming about going on holiday in 5 years time. She
needs to do some financial planning so that she will have

o
o
o

enough money to fund her holiday. She is wondering how best

to do this.
The scenario is meant to hook the learner, promote inquiry and
engagement with the lesson, and allow students to exercise problemsolving abilities. It addresses a larger concept, does not have a right or
wrong answer, and requires higher order thinking skills. Questions or
scenarios such as this are implemented in my lesson plan(s) whenever
possible.
Divide the class into 4 groups. Have students discuss the scenario and
write down their answers in their groups. Let students know that their
answers should include all financial vocab as well as mathematical
terms and operations that they know of (High ability students or
students who already grasp the basic concept of financial mathematics
covered in previous lessons, or still retain some information that they
have just learned from the video Money makes the world go
around should be able to use the terms such as income, saving,
invest, simple interest, etc. in their financial planning).
Move around to keep students on task, and assess their prior
knowledge about algebraic expressions, substitution into formulas,
converting percentages to fractions/decimals or vice versa, calculating
simple interest - the prerequisites for this lesson. Revision of these
concepts and skills, as necessary. This formative assessment helps
teacher
to find gaps between students, and misconceptions so that
teacher can plan how to tackle those issues in the next
lesson(s).
to group students for the next activities if necessary. For
example, high ability and middle/low ability students are mixed
together so that they can help one another.
Ask each group to summarise the scenario and perform their scenario
for the class on the board.
Ask students to vote for the scenario they like best - they should realize
that the winning scenario is one that reaches the goal faster and
generates more money.
Ask the class
Have you heard of compound interest?
Can you explain the difference between simple interest and compound
interest?
(Students responses to these questions are captured for reflection at
the end of this lesson)
Explain to students that todays learning objectives are to investigate
how compound interest affects the growth of our money and students
should be able to calculate compound interest at the end of this lesson
(Learning intention should be explicitly stated at the beginning of the
lesson to prepare students on what is to be expected for the lesson. It
gives them a clear goal in mind and draws them to the focus of the
lesson).
The following scenario is provided for the students to explore

Emily opens a savings account to save money and earn

interest. She deposits $10000 into it, and gets an annual
interest rate of 5%. Lets investigate how her money grows over
time.
Explore (30 minutes)
Learners explore new ideas and relationships with minimum teacher
guidance. The teacher just acts as a facilitator. The goal is to allow learners to
apply previous knowledge, feed their interest and stimulate curiosity.
o Hand out Worksheet 1: Using an online compound interest calculator
(one per student)
Worksheet 1: using an online compound interest calculator
(1a)
Simple interest
Compound interest
Saving
$10000
$10000
Annual interest
5%
5%
Years invested
5
5
Interest earned in 5 years
???
???
Value after 5 years
???
???
(1b)
Saving
Annual interest
Years invested
Interest earned in 10 years
Value after 10 years

Simple interest
$10000
5%
10
???
???

Compound interest
$10000
5%
10
???
???

(1c)
Saving
Annual interest
Years invested
Interest earned in 20 years
Value after 20 years

Simple interest
$10000
5%
20
???
???

Compound interest
$10000
5%
20
???
???

(1d)
Saving
Annual interest
Years invested
Interest earned in 30 years
Value after 30 years

Simple interest
$10000
5%
30
???
???

Compound interest
$10000
5%
30
???
???

(1e)
The initial deposit is $10000. There are no additional deposits. The interest
rate is 5% compounded annually. The term is 7 years.
Use the online calculator to complete the third column in the table below. You
can find the correct balances by hovering your computer mouse over the
graph. Complete the second column by calculating the difference between
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balances

Year
0
1
2
3
4
5
6
7

Compound interest earned over

the 12-month period ($)
0

Balance ($)
10000

o Explain to students that they calculate and fill in the simple interest
values themselves, based on their prior knowledge

and use this online calculator moneysmart.gov.au/tools-and-

resources/calculators-and-tools/compound- interest-calculator to
fill in the compound interest values (this ICT application helps develop
students understanding and confidence since they can use it to verify
their answers)
A screenshot of the online calculator

Answer to Worksheet 1: using an online compound interest

calculator (This answer sheet is used by teacher to check students
answers)
(1a)
Simple interest
Compound interest
Saving
$10000
$10000
Annual interest
5%
5%
Years invested
5
5
Interest earned in 5 years
$2500
$2763
Value after 5 years
$12500
$12763
(1b)
Saving
Annual interest
Years invested
Interest earned in 10 years
Value after 10 years

Simple interest
$10000
5%
10
$5000
$15000

Compound interest
$10000
5%
10
$6289
$16289

(1c)
Saving
Annual interest
Years invested
Interest earned in 20 years
Value after 20 years

Simple interest
$10000
5%
20
$10000
$20000

Compound interest
$10000
5%
20
$16533
$26533

(1d)
Saving
Annual interest
Years invested
Interest earned in 30 years
Value after 30 years

Simple interest
$10000
5%
30
$15000
$25000

Compound interest
$10000
5%
30
$33219
$43219

(1e)
The initial deposit is $10000. There are no additional deposits. The interest
rate is 5% compounded annually. The term is 7 years.
Use the online calculator to complete the third column in the table below. You
can find the correct balances by hovering your computer mouse over the
graph. Complete the second column by calculating the difference between
balances
Year
Compound interest earned over
Balance ($)
the 12-month period ($)
0
0
10000
1
500
10500
2
525
11025
3
551
11576
4
579
12155
5
608
12763
6
638
13401
7
670
14071

Explain (25 minutes)

This is a teacher-centered phase in 5E model; because teachers become
active for correcting mistakes and completing the missing parts in students
results. Teachers may choose lecture method or may use another interesting
method like showing a film or a video.
o On completion of Worksheet 1: using an online compound interest
calculator, lead a class discussion and ask students
Which type of interest is more favourable to the saver?
Explain why there is a difference in the two final amounts in
(1a), (1b), (1c) or (1d).
The following facilitating questions can be used, asking students to
reference Table (1e) in Worksheet 1: using an online compound
interest calculator
1. Can you work out the compound interest earned after the first year
without using the online calculator? Students should know how to
do this, using their prior knowledge of simple interest. Some
students might find the answer $500 in the table helpful because
they can work backwards and realize that $500 = ($10000 x 5 x
1)/100
2. Can you calculate the compound interest earned in year 2 without
using the online calculator? Students can do this by following the
same method that they use in (1): ($10500 x 5 x 1)/100 = $525.
From there onwards, Students can work out the remaining
compound interests and balances in Table (1e) without using the
online calculator.
3. Can you calculate the simple interest earned after 7 years and
explain why there is a difference now?

4. If possible, ask students to use a spreadsheet application such as

Microsoft Excel to tabulate their data (similar to the format use in
Worksheet 1). By doing so, students learn how to use
tables to represent data and
built-in formulas in that ICT application to obtain the results
that they want (Using Excel to calculate interest is not
covered in this lesson).
As students work through the above activities, the reason why there is
a difference between simple interest and compound interest becomes
clearer and clearer to them (especially to the low ability students):
compound interest is calculated based on the existing amount in a
bank account while simple interest is always based on the initial
amount or principal.
Elaborate (25 minutes)
Learners generalize the application of their knowledge by applying new
concept(s) learned in the previous phase to new situations.
o As an in-class practice, arrange students in pairs to investigate the
following scenario
Some savings accounts are yearly compounded. Others are
monthly compounded. Bank of Aussie offers a savings account
with an interest rate of 4.8% p.a., compounded monthly. How
much money will Emily have in 1 month, 2 months, 3 months,
and 4 months if she deposits $10000 into this account?
This time, students knowledge of compound interest is extended to
monthly rate and the online calculator is not helpful because it only
works with years. Students need to possess the concept of
percentages and decimals to work through this scenario (refer to
Prerequisites section). Ask students
What is the difference between yearly compounded interest and
monthly compounded interest?
What percentage of interest should you earn per month if you
earn 4.8 % per year?
Students can solve the given scenario when they understand that the
first step is figuring out the monthly compound interest rate by dividing
the yearly rate by 12 then just follow the same path as (1e).
o Challenge high ability students who breeze through the monthly rate
scenario with weekly/daily rate scenarios so they do not lose
momentum.
o For homework, distribute Worksheet 2: Different compounding
periods (one per student) and ask them to hand it in next lesson. And
leave students with something to think at home
Emily plans to leave her money with Bank of Aussie for 5 years.
Would she earn more or less interest if it were monthly instead
of annually compounded? Can you explain why? The online
calculator is of great help to you! Well discuss it in our next
lesson.

Worksheet 2: Different compounding periods

(2a): Calculate monthly compound interest
The initial deposit is $10000. There are no additional deposits. The interest
rate is 4.8% p.a., compounded monthly. Calculate and fill in the following
Month
0
1
2
3
4
5

Compound interests earned ($)

0

Balance ($)
10000

(2b): Calculate weekly compound interest

The initial deposit is $10000. There are no additional deposits. The interest
rate is 5.2% p.a., compounded weekly. Calculate and fill in the following
Week
0
1
2
3
4
5

Compound interests earned ($)

0

Balance ($)
10000

Answer to Worksheet 2: Different compounding periods

(2a): Calculate monthly compound interest
The initial deposit is $10000. There are no additional deposits. The interest
rate is 4.8% p.a., compounded monthly. Calculate and fill in the following
Month
0
1
2
3
4
5

Compound interests earned ($)

0
40
40.16
40.32
40.48
40.64

Balance ($)
10000
10040
10080.16
10120.48
10160.96
10201.60

(2b): Calculate weekly compound interest

The initial deposit is $10000. There are no additional deposits. The interest
rate is 5.2% p.a., compounded weekly. Calculate and fill in the following
Week
0
1
2
3
4
5

Compound interests earned ($)

0
10
10.01
10.02
10.03
10.04

Balance ($)
10000
10010
10020.01
10030.03
10040.06
10050.10
10

Evaluate
o By asking questions and looking at student activities or student work on
given problems, worksheets
o Spend the last 10 minutes or so on goal reflection, students selfassessment, and what is going to be taught next. Ask students reflect
the following in their notebooks
What have I learned?
What did I do well?
What did not go well?
What could I do to improve next time?
Our next lesson will be on..
The Reflection part gives students the opportunity to reflect on the
bigger-picture meaning ofthe lesson, and to assimilate and personalize
some of the concepts and ideas learned about in the class.
References
o Maths Quest 10/10A for the Australian Curriculum Teacher Edition
o Reaching goals: Whats involved? Year 10 Mathematics
(ASICd MoneySmart Teaching)
o Maths A resource for teaching and learning numeracy
(Consumer Affairs Victoria)
o Practical Money Skills for Life Teachers Guide: A Way To Wealth

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