Herkimer and the Stat Pack Venture Into Money MathematicsThis is the story about 10 students (the STAT PACK) who are working their way through lessons in money mathematics. They are serious students who progress to the point where they can, among many other things, calculate mortgage payments, understand the dangers of making minimum payments on credit card bills, explain a financial retirement savings program, demonstrate how a Ponzi scheme works, and provide illustrations showing the advantages of starting to save early. Their leader in this educational adventure is Herkimer, a cartoon character who provides stimulating questions and activities to enhance the learning process. Herkimer is not the teacher, but he is always present when Pack members have discussions relating to money topics they are studying. He is a Hobbs-like character (for those familiar with the Calvin and Hobbs comic strip) who is visible only to the Pack. Herkimer is not unfamiliar to the students since they had worked with him while learning basic statistics in a previous book titled THE STATISTICAL ODYSSEY OF HERKIMER AND THE STAT PACK. A major reason for the financial crisis that began in 2008 was a lack of financial literacy in citizens of all ages. Author Sanderson M. Smith is a multiple award-winning mathematics teacher (including the California Presidential Award for Excellence in the Teaching of Mathematics and a California National Educator Award) who developed a FINANCIAL MATHEMATICS course at Cate School (Carpinteria, CA) many years ago. This entertaining and easy-to-read book includes lessons and activities that were developed for students in the extremely popular Cate course. |
Contents
INTRODUCTION | 8 |
HERKIMER AND THE STAT PACK | 15 |
SINGLE DEPOSIT ACCUMULATION | 22 |
SINGLE PAYMENT DISCOUNTING | 28 |
TRAPPING A FINANCIAL SOLUTION | 34 |
PACK MEMBERS CREATE USEFUL | 40 |
MULTIPLE DEPOSIT ACCUMULATION | 49 |
FINANCIAL SITUATIONS INVOLVING | 55 |
Common terms and phrases
accumulated value ACTIVITY SET ADJUSTABLE RATE MORTGAGES ALCAL activity algebra Amount in fund annual coupons annual interest rate Annual Rate Compounded annual yield asked the Pack beginning-of-year deposits bill Book Value borrower Calculator entry Number calculator to check Carolyn Cate School chalkboard computations coupon rate credit card debt Darren deposit earning displayed dollars earning a true earning an annual entry Number represented equation evaluated Calculator entry FASCINATING FINANCIAL FACTS financial mathematics formula Herkimer HERKIMER'S FASCINATING FINANCIAL interest earned interest portion investment Janice monthly payment nominal rate overhead Pack members payday loan Payment Interest Principal payment schedule period Ponzi scheme present value principal outstanding purchase price purchased to yield PYMT rate compounded monthly Roger Rule of 72 Scenario Series E bonds SET FOR SESSION single deposit spreadsheet Stat Pack teaser rate transparency true annual interest true annual rate U.S. Savings Bonds Valarie Wayne year-end payments yield rate