Rapunzl | Texas Financial Literacy Standards

Module 14

Financial Equations

This module dives deeper into financial algebra by illustrating how we can graphically represent financial functions. We explore linear equations, calculating growth rates with slope, and applying these concepts to real-world problems.

We then examine the concepts of compound growth and the time value of money in more detail and determine how to calculate compound interest and the present value of future cash flows.

Module At A Glance

Grade Levels:

7th - 12th

Est. Length:

2-5 Hours (19 slides)

Activities:

8 Activites

Articles:

0 Articles

Languages:

English & Spanish

Curriculum Fit:

Math, Business, Economics, CTE, Social Studies

Standards Alignment:

CEE National Standards, Jump$tart National Standards & Relevant State Standards

Guiding Questions

- What is the Cartesian plane and how can it help us model equations and functions?

- How can functions be used to determine important financial lines?

- Is there a standardized format for linear equations, and how can these be generalized to real-world problem.

- What are key ways to use and solve linear equations?

- What are piecewise functions and how do they relate to the real world like taxes?

- What is the value of compound growth?

- What is the time value of money and how does it relate to future value?

Enduring Understandings

- Understanding financial equations can help make informed decisions about finances, budgeting, saving, and investing.

- Linear equations can be used to model financial situations where the relationship between two variables is proportional, such as income and expenses.

- Piecewise functions model financial situations where the relationship between two variables changes at certain points, such as tax brackets or interest rates.

- Compound growth can model financial situations where the value of an investment or loan changes over time exponentially.

Module Vocab & Key Topics

Cartesian Plane

A two-dimensional plane formed by the intersection of a horizontal x-axis and a vertical y-axis.

Coordinate Pair

A pair of numbers that identifies the position of a point on the Cartesian plane, usually written as (x, y).

Domain

The set of all possible input values of a function.

Range

The set of all possible output values of a function.

Function

A relationship between two sets of numbers, where each input value (domain) corresponds to a unique output value (range).

Y-Intercept Form

The linear equation of a line written in the form y = mx + b, where m is the slope of the line and b is the y-intercept.

Slope Of A Line

A measure of the steepness of a line, calculated as the change in y divided by the change in x between two points on the line.

Parallel

Two lines on the Cartesian plane that have the same slope and never intersect.

Perpendicular

Two lines on the Cartesian plane that intersect at a right angle and have slopes that are negative reciprocals of each other.

Continuous Function

A function that is defined and has a value for all points in its domain, with no gaps or jumps.

Discontinuous Function

A function that has one or more gaps in its domain, where it is undefined or has no value.

Piecewise Function

A function that is defined differently on different intervals or "pieces" of its domain.

Net Present Value

A financial calculation that measures the present value of future cash flows, taking into account the time value of money.

Time Value Of Money

The concept that money today is worth more than the same amount of money in the future, due to the potential to earn interest or invest the money.

Rapunzl connects investors with simulated stock portfolios & stock trading competitions. Join the thousands of others investing alongside their friends & competing for free prizes!

rapunzl personal finance app facebook page social icon

rapunzl personal finance app twitter page social icon

rapunzl personal finance app linkedin page social icon

rapunzl personal finance app mail link social icon

Pricing data is provided by Nasdaq Inc and Coinbase Inc. All information provided 'as is' for informational purposes only. This information is not intended for trading purposes nor is it intended as advice. Neither Rapunzl nor any of its independent providers is liable for informational errors, incompleteness, or delays, or for actions taken in reliance on information contained herein. By accessing the Rapunzl platform you agree not to redistribute the information found therein.

The information contained on this website and from any communication related to this website is for information purposes only. Rapunzl Investments LLC (Rapunzl) does not hold itself out as providing any legal, financial or other advice. Rapunzl also does not make any recommendation or endorsement as to any investment, advisor or other service or product or to any material submitted by third parties or linked to this website. In addition, Rapunzl does not offer any advice regarding the nature, potential value or suitability of any particular investment, security or investment strategy. The material on this website does not constitute advice and you should not rely on any material in this website to make (or refrain from making) any decision or take (or refrain from making) any action. All investment, borrowing or tax decisions should be made with the advice of an appropriately qualified and licensed advisor.