Unit 1: Financial Statements – Students learn about wealth by creating income statements, balance sheets and budgets. This incorporates the mathematics of spreadsheets and a review of Algebra I.
Unit 2: Earning Interest – Students learn how transferring money to the future increases value through compounding. This incorporates the mathematics of exponents, exponentials and logarithms.
Unit 3: Regular Payments – Students learn the math underlying regular cash flows such as mortgages and retirement savings. This incorporates the mathematics of sequences, series and limits.
Unit 4: Insurance and Expected Value – Students are introduced to risk and making decisions in the face of uncertainty. This incorporates the mathematics of probability and expected value.
Unit 5: Stocks and Risk – Students learn about the stock market, with a focus on the efficient market hypothesis and the statistics related to diversified and systemic risk. This incorporates the mathematics of correlation and normal distributions.
Alternative Unit: The Role of Government – Students gain an understanding of the government’s role in shaping the environment in which individuals make financial decisions. This involves applying mathematics to real-world situations.
Alternative Unit: Complex numbers and trigonometric functions of the unit circle – Students learn complex numbers and trigonometric functions of the unit circle. This builds on the mathematics of compound interest to develop functions of complex numbers on the unit circle.
Alternative Unit: Advanced Extensions – Students investigate more advanced mathematical models of the financial topics discussed in the previous five units. This may provide advanced students with a strong foundation to go on to a first course in calculus.