Fundamentals of Financial Mathematics
Informacje ogólne
Kod przedmiotu: | 330-ERA-1FFM |
Kod Erasmus / ISCED: |
14.3
|
Nazwa przedmiotu: | Fundamentals of Financial Mathematics |
Jednostka: | Wydział Ekonomii i Finansów |
Grupy: | |
Punkty ECTS i inne: |
(brak)
|
Język prowadzenia: | angielski |
Rodzaj przedmiotu: | obowiązkowe |
Założenia (opisowo): | This course aims to provide students with basic knowledge and practical skills in financial mathematics. Students acquire theoretical knowledge and practical skills in the field of calculation simple and compound interest along with distinguishing between nominal and effective interest rates, calculation the present value (PV) and future value (FV) of a single amount and cash flows, calculation and interpretation of basic indicators of the economic viability of investment projects. |
Skrócony opis: |
The course gives an introduction to financial mathematics. It focuses on the application of the theory of financial mathematics to financial practice. The course includes topics such as the concept of the time value of money, rate of return, different types of interest rate (interest and discount rate, simple and compound interest rate, the nominal and effective interest rate) in various practical contexts, loans repayments and basic methods for evaluating the financial viability of projects. On successful completion of this course, students will have an understanding of key areas of financial mathematics and the ability to analyse real-world financial problems using quantitative methods. The course covers financial mathematics at an introductory level and is suitable as a preparation for the course such as Methods of Evaluating Investment Projects. |
Pełny opis: |
The course gives an introduction to financial mathematics. It focuses on the application of the theory of financial mathematics to financial practice. The course includes topics such as the concept of the time value of money, rate of return, different types of interest rate (interest and discount rate, simple and compound interest rate, the nominal and effective interest rate) in various practical contexts, loans repayments and basic methods for evaluating the financial viability of projects. On successful completion of this course, students will have an understanding of key areas of financial mathematics and the ability to analyse real-world financial problems using quantitative methods. The course covers financial mathematics at an introductory level and is suitable as a preparation for the course such as Methods of Evaluating Investment Projects. Number of hours: 30 (Lecture: 15, Classes: 15) Teaching methods: The course subject matter will be taught through a combination of formal lectures with presentations and case studies as well as in-class exercises and class discussions. W cyklu kształcenia 2020/2021 z uwagi na ograniczenia wynikające z pandemii COVID-19 wykłady i ćwiczenia odbywają się w trybie zdalnym z wykorzystaniem aplikacji MS Teams. Egzamin oraz kolokwium zostaną przeprowadzone za pośrednictwem platformy Blackboard. |
Literatura: |
Gallagher T.J., Financial Management: Principles and Practice, Textbook Media Press, 2016 |
Efekty uczenia się: |
At the end of the course students will be able to: - understand the effects of the time value of money on daily routine life and economic decision - understand the role of rate of return, interest rate and discount rate in economic decisions - calculate the present and future value of a single amount as well as PV and FV of cash flows - use interest factor tables and understand how they provide a shortcut to calculating PV and FV - build a loan amortization schedule, calculate the outstanding balance at any point in time - make investment decisions, apply discounted cash flow techniques to investment project appraisal |
Metody i kryteria oceniania: |
Teaching methods: The course subject matter will be taught through a combination of formal lectures with presentations and case studies as well as in-class exercises and class discussions. Lectures: The course ends with a written exam Classes: Students are evaluated throughout the course |
Właścicielem praw autorskich jest Uniwersytet w Białymstoku.