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Principles of financial mathematics

MTHF1701
Two hours English

Principles of financial mathematics

Principles of financial mathematics
1 Simple interest and discount: / Simple interest. / Time lines / Simple discount / Counting days / The time value of money
2 Compound interest: / Compound interest / Continuous compounding
3 Nominal and effective interest rates
4 Annuities: / Ordinary annuities certain / Annuities due
5 Amortisation and sinking funds: / Amortisation / Sinking funds
1.1 Mapped to: K1

Explain the methodologies for calculating present values and accumulated values under simple and compound interest frameworks.

Teaching Strategy Lecture
Assessment Methods Direct: Exams, quizzes
1.2 Mapped to: K3

Develop and describe models for calculating present values and accumulated values of level and non-level annuities using concepts and theories from financial mathematics.

Teaching Strategy Lecture
Assessment Methods Direct: Exams, quizzes
2.1 Mapped to: S1

Identify, formulate, and solve financial mathematics problems using established techniques such as interest theory, annuity valuation, and loan amortization.

Teaching Strategy Self-study Real-life problems
Assessment Methods Direct: Exams, quizzes
2.2 Mapped to: S2

Analyze and evaluate the financial implications of interest rate changes on investments, loans, and other financial instruments, and develop strategies to manage associated risks.

Teaching Strategy Self-study Real-life problems
Assessment Methods Direct: Exams, quizzes
2.3 Mapped to: S3

Communicate complex financial concepts and solutions in a clear and concise manner, both orally and in writing, with proper justification and logical reasoning.

Teaching Strategy Self-study Real-life problems
Assessment Methods Direct: Exams, quizzes
3.1 Mapped to: V1

Work with integrity and professionalism by applying ethical principles and adhering to financial and mathematical standards, whether working individually or as part of a team.

Teaching Strategy Personal questions
Assessment Methods Direct: Participation
3.2 Mapped to: V2

Encourage continuous learning and growth in financial mathematics, while working effectively both independently and collaboratively in a team setting.

Teaching Strategy Teamwork and class discussions.
Assessment Methods Direct: group assignments