Financial Mathematics

Course: AMT 113 1.0 Financial Mathematics (Compulsory)

Course content:

Simple Interest and Compound Interest, Discount, Equation of value, Yield Rates, Approximate Dollar-Weighted Yield Rates, Time-Weighted Yield Rates, Annuities-Immediate, Annuities-Due, Perpetuities, Deferred annuity, Finding the number of payments in an annuity, Annuities with payments in geometric/ arithmetic progressions, Reinvestment, Outstanding loan balances, Amortized loans and amortization schedules, The Sinking Fund Method and Sinking Fund schedules, Comparison of Amortization and Sinking Fund methods

Recommended Readings:

1. Daniel,J., & Vaaler,L. (2009). Mathematical Interest Theory (2^nd ed). American Mathematical Society.
2. Broverman,S.A. (2010). Mathematics of Investment and Credit (5^th ed). Actex.
3. Brown,R.L., Kopp,S., & Zima,P. (2007). Mathematics of Finance (6^thed). McGraw-Hill Ryerson.
4. Brown,R.L., & Zima, P.(2011). Schaum’s Outline of Mathematics of Finance (2^nded). McGraw-Hill Education.