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In 2010, about 886 thousand homes were sold in the United Kingdom. For the next 3 years, the number of homes sold increased by about 7% annually. Assuming the sales trend continues,
Use this discussion to ask students to share how they made sense of the expression in the second question and the reasonableness of the prediction about the total number of house sales from 2010 to 2016.
Select previously identified students to share how many homes they determined were sold in 2013 and 2014, and how they reasoned about what the value of means, specifically attending to why means 2010 to 2020 and not 2010 to 2021.
Conclude the discussion by informally polling the class to see if they think the prediction for the total number of house sales from 2010 to 2016 seems reasonable. Select students from each side to explain their reasoning. Since these dates are in the past, we can look up home sales data in the United Kingdom and see that the data is a reasonable match through 2015. After 2016, the data shows a decrease in yearly home sales.
Display the situation in the activity for all to see, and ask if students have any clarifying questions. Make sure students understand that the money is deposited at the start of the year and the interest is added into the account at the end of the year.
Ask students to estimate: “Before calculating anything, predict how much you need to put into the account at the start of each year to have over \$100,000 in it when you turn 70”. Poll the class for their estimates, and record them for all to see throughout the activity.
Let’s say you open a savings account with an interest rate of 5% compounded annually (once per year) and that you plan on contributing the same amount to it at the start of every year.
If students are not sure how to begin the second problem, consider saying:
Select students to share how they calculated the values of the accounts in the question about what happens when different amounts of money are invested each year, focusing in particular on how students identified the values of , , and before using the formula .
Select previously identified students to share how they used a graph of to figure out how many years until the account reaches \$100,000. If students did not use a graph, display one for all to see and invite students to identify how to use the graph to answer the last question.
Conclude the discussion by returning to the poll results, and invite students to calculate how much they would need to invest each year in this situation (about \$478 per year). Invite students to share why they think they under or overestimated the value they would need to invest each year. The goal of this final discussion is for students to have an opportunity to articulate the ideas they have about how geometric sequences change and to make connections between context, formula, and graph where possible.