9-12 GradesMathematics

Tasks for Inflation

Personal Finance Big Ideas taught in this task:

Rising Gas Prices

The purpose of this task is to give students an opportunity to explore various aspects of exponential models (e.g., distinguishing between constant absolute growth and constant relative growth, solving equations using logarithms, applying compound interest formulas) in the context of a real world problem with ties to developing financial literacy skills. In particular, students are introduced to the idea of inflation of prices of a single commodity, and are given a very brief introduction to the notion of the Consumer Price Index for measuring inflation of a body of goods.