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Centre for Research in Mathematics Education (CRME)
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Ponzi pyramid schemes
The task is set in the context of a Ponzi scheme. A letter describes the following scheme:
“Do you want to get rich quick? Just follow the instructions carefully below and you may never need to work again:
1. At the bottom of this email there are 8 names and addresses. Send $5 to the name at the top of this list.
2. Delete that name and add your own name and address at the bottom of the list. 3. Send this email to 5 new friends.”
Students calculate how much money the person would receive if the scheme worked as planned. They then go on to investigate what could go wrong with the scheme, and to say why such schemes are illegal.
This task is from the Mathematics Assessment Resource Service, a collaboration between UC Berkeley and the Shell Centre team at the University of Nottingham. A full rubric is given for the task, together with examples of student work and suggestions for helping students overcome misconceptions. Further information on the collection is given here.
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