MATHEMATICS OF FINANCE (4 Credits)

Learning Outcomes:

On successful completion of this course, students will be able to: identify the basic mathematical techniques used to solve financial mathematics problems; apply the concepts of interest rates i.e.: effective, simple, compound, nominal, discount and force of interest to solve given interest problems; analyze the annuities concepts i.e.: annuity due, annuity immediate and perpetuities for given cash flow problems; calculate the payment needed to pay off a loan with equal payments using amortization and sinking fund.

Topics:

1. Overview and Mathematical Prerequisites;
2. Measuring Interest;
3. Solving Problems in Interest;
4. Annuities;
5. Amortization Schedules;
6. Sinking Funds.