Discussion+Prompt

//** An Activity Involving Compound Interest (adapted from criticalthinking.org) **//

Here a lesson plan on compound interest is being remodeled to incorporate more critical and analytical thinking skills.

//** Lesson Plan Goals: **//
 * Distinguish compounded interest, simple interest, and interest compounded continuously
 * Compare various institutions' investment programs by clarifying their claims, and refining generalizations
 * Make a personal financial plan for the future (determining relevant and irrelevant information along the way)

//** What a basic lesson plan would look like: **// Students will learn formulas for compound interest. They should be able to solve these equations with exponents and logarithms.

This lesson does not explain the difference in the various formulas nor when, why, or how to apply them. Using information pamphlets and ads from banks will also help students practice distinguishing relevant from irrelevant information. When students are setting up and working out equations, students should understand reasons for doing each step.
 * // What's wrong with this?? //**


 * // Strategies used to Improve: //**
 * Question more deeply and ask more significant questions
 * Clarify issues, conclusions, or beliefs
 * Refine generalizations and avoid oversimplifications
 * Distinguish relevant from irrelevant facts

//** Revised Plan: **// After the formulas for interest compounded continuously, daily, monthly, and simple interest are introduced, the students will be given examples that will not show a significant difference once the interests are calculated. They will then be asked why this worked in this manner. Have students explain in detail why the equations are set up as they are. When would one type of interest be more desirable than another? When would this kind of account be best? That? First have students guess, then do the calculations.

Prior to the introduction of these formulas, the students will have been asked to gather information from five different banks/savings & loans. Discussion will then be stimulated by these questions which clarify the policies: How do these institutions describe their method of calculation of interest? Are all these institutions offering similar plans? How are the plans different? Why are their plans different? What kinds of terms do they use? What do they mean? Are there special restrictions on these accounts? How could these various kinds of accounts apply to different personal situations? To what kind of individual would it apply and how? Are there factors that may change a particular situation?

Next, on their own, the students would write a personal scenario of their lives ten years from now, briefly describing their lifestyles and incomes. They would explain what criteria they would use in selecting a bank. They would explain what factors in their lives are critical in their personal situation.

After reading the above scenario, do you think this lesson has been revised appropriately to incorporate critical thinking? Does this lesson seem realistic in a high school classroom? Although this scenario would be for a math or economics classroom, how could you apply the same strategies to a lesson in your own discipline? And finally, do you think that students are learning critical thinking through currently used lesson plans? Why do you think it is important (or not important) to integrate such skills into lessons?
 * // Discussion Assignment: //**

Back to the Home Page