Lesson Plan 4 Full Lesson with 25

mins
by Fan Li
Day: Thursday Date: 19-Feb-15 Time: 09:40-10:40 Year:
10 Essential
Learning Area: Mathematics Topic: Number and Algebra /
Financial Mathematics
This lesson will be conducted in conjunction with my buddy teacher:
o I am responsible for interpreting key concepts, formulas, and formula
derivation. (25 mins)
o Buddy teacher demonstrates examples. (15 mins)
o Both of us tutor the self-practice session in class. (20 mins)

Curriculum content description:

(from ACARA)
Connect the compound interest formula to repeated applications of simple
interest using appropriate digital technologies (ACMNA229)

Students prior knowledge and experience:

(Outline what the students already know about this topic)

Students have prior experience in number sets such as N, Z, and Q.

Students have prior knowledge in arithmetic of numbers including the
addition, subtraction, multiplication, division and exponentiation.
Students have basic knowledge of percentage and its calculations with other
numbers.
Students havent been exposed to the log function; hence have difficulty to
solve the T in the formula A=P(1+R/n)^(nT).
Learning purpose: To make students understand the concepts of simple
interest rate, compounding interest rate and effective interest rate. To provide the
students an explicit explanation of the main formulas that are used in the
calculation of A, P, R, T, n, and Ref. To fully explain how to solve one variable given
the rest are known for a formula.

Learning objectives:

Evaluation:

(What will students know and be able to

do at the completion of the lesson
specific, concise and attainable
objectives).
Understand the definition of
simple interest rate, compounding
Interest Rate, effective interest
rate.
Give explicit explanation of the
main formulas that are used in the
calculation of A, P, R, T, n.
Give full explanation of the

(Explain how you will know that lesson

objective have been achieved / monitor
student learning)
(a) Could students understand the
concept and the difference between
simple, compounding and effective
interest rate?
o By quiz to address whether all
interest rates should be stated
per annum.
o By quiz to see whether
students understand what
compounding means? Giving
clear answers to the quiz.

On completion of this lesson,

students will be able to:

formulae derivation.
Fully explain how to solve one
variable given the rest are known
for a formula.

(b) Could students understand the

formulas and their parameters?
o Quiz what each symbol means
and their units in each formula.
o Give a couple of examples to
check whether students can
conduct basic symbolic
calculation in algebra.

Preparation and Resources:

(Detail what resources will be used and what other preparation of the learning environment
will be required)
Australian curriculum Senior Mathematics Method Topic 2 Trigonometric

Functions
Essential Mathematics for the Australian Curriculum year 10 and 10A
Quantitative Methods Chartered Financial Analyst Level 1
Corporate Finance: A Focused Approach by Ehrhart and Brigham 2 nd Edition
Handouts include lesson structure, learning objectives, key concepts,
formulas, derivation of formulas and hints and tips.

Catering for diversity

(detail any adjustments considerations for

educational/resource adjustments)

Timi
ng:

Diversity is required in this classroom for the students with disruptive

behaviours based on the information provided by my buddy teacher:
o 32 students in the classroom and ratio of female to male is around 1:1.
Less than 10 students have South East Asian backgrounds or
aboriginal background compared with the majority being European
Australians and New Zealanders.
o All students demonstrated the understanding of the preliminary
knowledge through quiz sessions prior to and in the middle of the
lesson.
o Disruptive behaviour from a few students can impact negatively the
learning atmosphere of the whole class, hence a classroom
management strategy and diversity should be considered to re-engage
the misbehaved students.
o Being student centered and giving direct teaching with explicit
instructions is my main strategy, facilitated by an increased inquirybased teaching method given a high degree of class participation.

Learning Experiences:
1. Introduction: (How will I engage the learners?)
09:40 09:45 (5 mins).
A brief introduction of my background focusing on my
learning experience of mathematics in high school.
Give positive information regarding how many opportunities
are available if you become mathematically advanced in
Australia and in the world.
Clarify to students that I am not directly related to Bruce Lee
or Jet Li even though we seem to share the same family

name so students understand I have a sense of humour.

2. Sequence of learning experiences: (What will you do to help
the students achieve the learning objectives? What tasks and
activities will the students be involved in to help achieve the
learning objectives?)
09:46-10:03 (18 mins) Interest Rate and Calculation
Ask the question: what is the interest rate by comparing the
prices of a shirt in Target? Collect and respond to the
answers using the words excellent to agree with or not
exactly if disagree.
Then give a clear definition of simple interest rate that is the
cost of money. Explain interest rate say 5% p.a., is
composed of the base rate 2.0% given by RBA, plus 1.5%
market factor and 1.5 % business factor (operational risk,
default and bankruptcy risk, etc).
Then ask if anybody knows why the interest rate that the
Greek government borrows from the European Central Bank
is so high at the moment? Give the exact answer using the
3rd component of the interest rate, default risk, so students
understand the interest rate of borrowing is not the same for
individuals, business, corporates and countries. Students are
engaged since they can use knowledge from the textbook to
explain the issues in real life.
Explain interest compounding is equivalent to capitalizing
the interest earned from savings at the end of the term on
top of the initial principal P, rather than spending for
Christmas gifts. Then address that the new principal at the
end of term 1, P1 = P0+I = A1. Take the opportunity to
introduce the importance of the subscript in financial
mathematics as the mark on a timeline.
Give the main formulas I = PRT (Simple interest without
compounding); A=P+I; A=P(1+R/n)^(nT). Explain the
meaning and the units of each symbol. Great emphasis on
explaining n: the compounding frequency in a year; T: yrs of
investment, if less than 1 year T is a proportion of 1 year i.e.
0.5 (6 months), if more than 1 year, T is the multiple of 1
year e.g. 1.5 (18 months). nT: total number of investment
terms. Repeat once again that interest rate R in all formulas
stands for the simple interest rate p.a.
Great emphasis on the accuracy, consistency and logic in the
associated formulas to avoid misleading.
Derive the formula A=P(1+R/n)^(nT) using timeline analysis,
the definition of compounding, and mathematical deduction.
Give the explicit definition of effective interest rate Ref and
its units as percentage p.a.. Ref for compounding is the
equivalent annual simple interest rate that would yield the
same return after 1 year.
Use the definition of Ref and A=P(1+R/n)^(nT) to derive the
Ref formula:
Ref = [(1+R/n)^n-1] x 100%

Give clear instruction on how to solve the unknown variable

if the rest are given in a mathematical equation.
Give explicit conclusion that the more frequently the simple
interest rate is compounding, the higher Ref is. Ref > = R, =
comes from no compounding.

Lesson conclusion: (How will you summarise the learning and

relate it to the lesson objectives?)
10:04 10:05 2 mins)
Address all interest rates should be expressed as percentage
per annum.
T in financial mathematics has to be either a proportion of 1
year if less than 1 year or multiples of 1 year if greater than
1 year. Never ever plug other time unit in the formula
directly before converting it to Yrs.
Quickly review main formulas and address that to solve one
variable we need to know the rest.
Hand over to my buddy teacher to demonstrate a couple of
examples involving the use of the above formulas.

Lesson Evaluation:
(Reflect on the lesson. What worked? What did not work? What would you change?
Why?
What didnt work so well:
Some students struggled to understand the formula derivation, as they are
weak in symbolic computation of algebra.
Students felt my content was too much to digest in one session.
Students felt my content is challenging in terms of the depth of the
knowledge (maybe a good thing to stretch their limit).
What did work so well:
Clear explanation of each concept.
Clear statement of each theorem, formulas and their conditions and
limitations.
Focus on full-length explanation of the symbols, denotation, unit and the
syntax.
Students acknowledged and appreciated the importance of explicit
instructions of each topic.
Raising the pitch and changing the tone of my voice to cope with disruptive
behaviour was not always effective.
What would you change? Why?
Reduction of the content density and intensity: it can be divided into half or
extended from half a lesson to a full lesson. Examples and self-practice can
be demonstrated on the following lesson.
Diverse classroom management strategies are required to deal with the
misbehaviours and noise in the classroom.
Real life examples such as using the bankruptcy risk to explain the concept
of interest rate showed a great engagement with students. It made them feel
the knowledge they learnt was quite useful in real life.

Continue to explore the possibilities of using advanced mathematical

software (i.e. Mathematica) to write the courseware. This is my way to
engage my students from the digital era.

My philosophy in teaching mathematics will never change:

I will never surrender my strong belief in teaching mathematics in every
lesson of mine:
o Gradually influence and change my students belief of
mathematics from merely focusing on plugin and checkout
type of questions to a focus on critical thinking and problem
solving skills.
o These critical skills in mathematics mean students can use
accurate symbols, can conduct symbolic computation by hand
(solid algebra foundation), give clear denotations (thorough
understanding of core concepts), use correct syntax, employ
the related formulas and theorems, build up mathematical
models and last but not least, are also able to interpret the
results.