Mathematics for Economics
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Course informations
| Study program level |
Undergraduate |
| Study program |
Entrepreneurship |
| Study program direction |
Entrepreneurship |
| Course year |
1. |
| Course semester |
II |
| Course status |
Core |
| ECTS |
4 |
| Lectures (h) |
15 |
| Excercises (h) |
30 |
| Seminars (h) |
- |
Course objectives
Students will apply basic mathematical methods and procedures necessary for different applications in the economy and the rationally decide on the way of lending. They will learn to use the Linear Program Solver program for optimization and formulas in Excel in order to calculate the final / initial value of post numeration/pre numeration payments, compile a repayment table for loans by equal annuity methods, equal repayment quotas and agreed annuities, and loan conversion.
Course outcomes
The name of the learning outcomes set: Linear inequations and linear programming
Level: 6
- Graphically illustrate the solution of the system of linear inequations with two and more variables.
- To distinguish limited and unlimited areas of system solutions of linear inequations. • Calculate the value of the decision variables that give the optimal value.
- Formulate a mathematical problem and economically interpret it.
The name of the learning outcomes set: Economic mathematics
Level: 5
- Calculate and explain the issues related to ratios, proportions and scales, rule of three.
- Calculate and explain issues related to percentage (more 100, less 100) and pro mile accounts.
- Determine the similarities and differences between simple and complex interest rates, decursive and anticipative interest rate calculations, and conforming and relative interest rates.
- Use calculators and / or computers to solve problems in the area of economic math and explain the obtained values.
- Identify the similarities and differences between the prenumerando and the postnumerando of present and finite amounts
- Calculate the value by prenumerando / postnumerndo current / final amount, the rate, time and interest rate based on the given data
- Identify similarities and differences between several loan repayment methods (equal anuities, equal repayment quotas, and agreed annuities) that are repayable at the beginning or end of each repayment period.
- Assess which of the methods is more favorable to borrowers depending on their financial capabilities
- Comment and compile the repayment schedule of the loan (for simpler examples using a calculator, more complex ones by using a computer).
- Determine and explain the difference between interest rates when applying the relative or conforming interest rate.
Course content
Linear inequations and linear programming: a system of linear equations with two unknowns, optimization without and with limitations, linear programming in two dimensions: geometric approach, geometric introduction to simplex method, simplex method, dual problem, maximization and minimization with mixed problem constraints. Economy mathematics: ratios, scale and proportions, rule of three, Division accounts (simple, complex), compound bills (simple and complex), balance account, foreign exchange accounts, percentage bill of interest, simple and complex interest rate calculations (decursive and anticipative), final and present value of the investment, nominal, relative and conforming interest rate (decursive and anticipatory calculation), final and initial value by pre-numeration and postnumeration of periodic payments (payouts), lifetime rent, loan, loan with equal annuities, loan repayment under annual annuities, loan with equal repayment quotas, loan with various annuities and various repayment quotas, conversion of the loan.
