Module Specifications..
Current Academic Year 2023 - 2024
Please note that this information is subject to change.
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None Repeat of class test. |
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Description MS216 aims to provide students with a grounding in elements of financial mathematics and its related applications, particularly the calculation of present and accumulated values for various streams of cash flows. Applications will include the use of a variety of annuity functions in loan calculations and investment project appraisal problems. | |||||||||||||||||||||||||||||||||||||||
Learning Outcomes 1. Show how interest rates or discount rates may be expressed in terms of different time periods. 2. Calculate the present value and the accumulated value of a stream of equal or unequal payments using specified rates of interest, and the net present value at a real rate of interest, assuming a constant rate of inflation. 3. Define and use the more important compound interest functions including annuities certain. 4. Define an equation of value. 5. Describe how a loan may be repaid by regular instalments of interest and capital. 6. Apply discounted cashflow techniques to solve investment project appraisal problems. | |||||||||||||||||||||||||||||||||||||||
All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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Indicative Content and Learning Activities
Interest RatesNominal and effective rates of interest and discount; constant force of interest; simple equations of value; yield.Basic Compound Interest FunctionsLevel, deferred and increasing annuities; present and future values; equations of value and yield.LoansLoan schedules; present values and accumulations; APR.Discounted Cash FlowNet cash flows; comparison of investment projects; net present values; yields; discounted payback period; real and money interest rates. | |||||||||||||||||||||||||||||||||||||||
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Indicative Reading List
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Other Resources None | |||||||||||||||||||||||||||||||||||||||
Programme or List of Programmes
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Date of Last Revision | 15-FEB-11 | ||||||||||||||||||||||||||||||||||||||
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