Assign students to work in groups and hand out a copy of Group Activity. The calculations are complicated, so students may need guidance with the math. For the group activity, using the formulas for Future Value and Present Value calculations or the Investopedia Calculators. Have students work in groups of 2-4 to answer the questions. Use the Group Activity Answer Key to review the answers as class.
Have the students complete the Exit Ticket and submit their responses before leaving the classroom. Use the Exit Ticket Answer Key as a reference to give student’s feedback on their work.
$100 is more valuable today than in the future because if you had the money in hand today, you could invest it and earn interest on it. Another reason $100 is more valuable today is because money loses value over time, due to inflation. When your parents (and grandparents) were young, $100 was worth a lot more. Use the link to the article on Business Insider: What $100 was worth in the decade you were born, which explains how the value of $100 has changed over time. Answer the questions.