Financial Mathematics
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Course informations
| Study program level |
Undergraduate |
| Study program |
Management |
| Study program direction |
Informatics management |
| Course year |
1. |
| Course semester |
II |
| Course status |
Core |
| ECTS |
7 |
| Lectures (h) |
30 |
| Excercises (h) |
30 |
| Seminars (h) |
- |
Course objectives
Students will master basic mathematical methods and procedures necessary for different applications in economics, monitoring economic dynamics, and arguing decision-making on lending.
Course outcomes
- Calculate and explain issues related to percentage (more 100, less 100) and pro mile accounts
- Calculate and explain issues related to ratios, relations, and proportions, rule of three, account od proportions, mix account, and chain account
- Determine the similarities and differences between simple and complex interest rates, decursive and anticipative interest rate calculation, and the conforming and relative interest rate
- Choose whether if it’s a final or initial or post numeration transfer of periodic deposits (payments)
- Use the calculator to solve the problems in this area and explain the obtained values • Identify similarities and differences between several loan repayment methods (equal annuities, equal repayment quotas, agreed annuities)
- Assess which of the methods is more favorable for a borrower depending on its financial capabilities
- Comment and compile the repayment schedule of the loan using a calculator
- Estimate and calculate the loan conversion with the given parameters
- Observe the consequences of changes in contractual terms of loan repayment
Course content
Economy mathematics: ratios, relations and proportions, rule of three, split account (simple, complex), mix account, billing account, percentage account of hundred, percentage bill lower (more) than a hundred, pro mille account. Sequences: concept, boundary value, arithmetic and geometric series. Financial mathematics: simple interest rate calculus (decursive and anticipatory consolidation), final and present value of the sum, the final and present value of more periodically equal sums, deferred and anticipated accrual with over numbering and post numerating payments, long-term repayment of equal annuities at the beginning and end of the period and repayment of equal quotas (long-term interest rate calculation), long-term loans equal to annuities at the end of the period (interest rate anticipation).
