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Module Title |
Mathematics of Finance:An Introduction
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Module Code |
MS216
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School |
School of Mathematical Sciences
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Online Module Resources
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| Module Co-ordinator | Prof John Carroll | Office Number | X139 |
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Level |
2
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Credit Rating |
5
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Pre-requisite |
MS101, MS102
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Co-requisite |
None
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Module Aims
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7 To introduce students to the mathematics of finance.
7 To enable students to work with various forms of interest rates and the basic compound interest functions in order to value cash flows.
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Learning Outcomes
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- A good understanding of interest rates and annuities.
- The ability to evaluate simple loans and mortgages.
- Analytical and problem solving abilities.
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Indicative Time Allowances
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Hours
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Lectures |
24
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Tutorials |
12
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Laboratories |
0
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Seminars |
0
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Independent Learning Time |
39
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Total |
75
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Placements |
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Assignments |
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NOTE
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Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.
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Indicative Syllabus
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Indicative Lecture hours given in < > below:
< 4 > Theory of Interest Rates: nominal rates of interest; accumulation factors; the force of interest; valuing cash flows.
< 8 > The basic Compound Interest functions: annuities-certain present values and accumulations; Deferred annuities; Continuously payable annuities; Loan schedules for level annuities.
< 6 > Annuities payable pthly: present values and accumulations of annuities payable phtly; Loan schedules for pthly annuities.
< 6 > Discounted Cash Flow: net cash flows; net present values; yields; comparison of investment projects; effects of inflation.
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| Assessment | | Continuous Assessment | 20% | Examination Weight | 80% |
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Indicative Reading List
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7 An Introduction to the Mathematics of Finance, JJ McCutcheon and W E Scott, Published by the Institute of Actuaries & the Faculty of Actuaries, Butterworth-Heinemann 1999. ISBN 0 7506 0092.
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Programme or List of Programmes
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| AF | BA in Accounting & Finance |
| BSSA | Study Abroad (DCU Business School) |
| BSSAO | Study Abroad (DCU Business School) |
| ECSA | Study Abroad (Engineering & Computing) |
| ECSAO | Study Abroad (Engineering & Computing) |
| FM | BSc in Financial & Actuarial Mathematics |
| HMSA | Study Abroad (Humanities & Soc Science) |
| HMSAO | Study Abroad (Humanities & Soc Science) |
| MS | BSc in Mathematical Sciences |
| SHSA | Study Abroad (Science & Health) |
| SHSAO | Study Abroad (Science & Health) |
| Archives: | |
