Abstract
This article proposes an in-depth mathematics analysis of simple and compound interest through an exploration of the mathematical structures underlying these concepts. Financial numeracy concepts (simple and compound interest, interest rates, interest period, present and future value, etc.) have been added to the mathematics curriculum of the Canadian province of Quebec in 2016. Yet, little is known with regards to mathematics teachers’ knowledge of financial concepts. We mobilized the relational paradigm framework in the context of simple and compound interest to construct an assessment instrument of teacher knowledge. Based on 36 teachers’ responses to the questionnaire, we observed that the majority of teachers did not use mathematical structures in problem solving; they were not able to make sense of simple and compound interest in ways that do not involve standard formulas. Such results indicate opportunities for professional development in regard to secondary mathematics teachers’ knowledge of mathematics in the context of simple and compound interest situations.
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The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.
Notes
Although we use the words borrower and lender, it is important to emphasize that financial interest exists in the world of personal finance both as debt and investment; it is always a matter of perspective. For example, when governments issue bonds and sell them to individuals looking for low-risk investments, the government plays the role of the borrower and individuals play the role of lender.
The Ontario Curriculum, Mathematics (2020). Retrieved from: https://www.dcp.edu.gov.on.ca/en/curriculum/elementary-mathematics
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This study was supported by Canada’s Social Sciences and Humanities Research Council through its Partnership Engage Grant.
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Cavalcante, A., Savard, A. & Polotskaia, E. Mathematical structures of simple and compound interest: An analysis of secondary teachers’ relational thinking. Educ Stud Math (2024). https://doi.org/10.1007/s10649-024-10308-6
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DOI: https://doi.org/10.1007/s10649-024-10308-6