Activity Detail
If you are using a TI-73, TI-83, TI-84 or TI-89, there may be particular math or science applications you will need to download to use certain activities. If you are using TI-Nspire technology, please update your TI-Nspire handheld operating system or computer software to view the latest activities. The latest TI-Nspire operating system was released in June 2009.
Browse by Subject Submit Activity Saved Activities Advanced Search
  


add to saved activities



print this activity
 
Continuous Compounding
 


Activity Overview

In this activity, students deal with financial computations, where the interest is compounded continuously. Depending on the length of each compounding period, students will determine the number of compounding periods.

Before the Activity

  • Select TVM Solver from the calculator menu
  • See the attached activity PDF file for detailed instructions for this activity
  • Print page 15-16 from the activity PDF file for your class

    		•

    		During the Activity

    		Distribute the pages to the class.

    Follow the Activity procedures:
  • Enter the values for the total number of payments (N), annual interest rate ( I%), present value (PV), and number of payments per year (P/Y)
  • Enter a very large number (1x1011) for the number of compounding periods per year (C/Y)
  • Calculate the future value of an investment when the interest is compounded continuously
  • Compare the effective annual rates for interest compounded continuously and interest compounded quarterly
  • Calculate the nominal annual rate given the effective annual rate of interest compounded continuously
  • Calculate the future yield of a deposit that earns interest compounded daily


    		After the Activity

    		Review student results:
  • As a class, discuss questions that appeared to be more challenging
  • Re-teach concepts as necessary

    		Other Downloads




    view standards alignment
    view textbook alignment

    Subject Area:
    Math : Algebra II : Exponential Functions
    Math : Precalculus / Trig : Exponential Functions
    Math : Algebra I : Exponential Functions

    Author:
    Texas Instruments

    Level:
    9-12

    Activity Time:
    60 Minutes

    Device:
    TI-83 Plus Family, TI-84 Plus Family

    Apps:
    Finance

    Software:
     

    Accessories:
     

    Other:
    This is Activity 6 from the EXPLORATIONS Book:
    Time, Value, Money: Applications on the TI-83.

    Report an issue with this activity