INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Banking and Finance
20152016
SYLLABUS 
Code 
Name 
Level 
Year 
Semester 
BAF 108 
Applied Mathematics 
Undergraduate 
1 
Spring 
Status 
Number of ECTS Credits 
Class Hours Per Week 
Total Hours Per Semester 
Language 
Compulsory 
5 
2 + 2 
119 
English 
Instructor 
Assistant 
Coordinator 
Elvisa Buljubašić, Senior Teaching Assistant 
Elvisa Buljubasic 
Zafer KONAKLI, Assist. Prof. Dr. 
[email protected] 
[email protected] 
no email 
This is an introductory course in financial mathematics. Topics that will be covered are: different types of interest (simple interest, discount interest, compound interest), annuities, debt retirement methods, investing in stocks and bonds 
COURSE OBJECTIVE 
The objective of this course is to introduce core ideas behind mathematical methods and tools, with a special focus on their application in financial mathematics. 
COURSE CONTENT 
 Simple Interest
 Simple Discount
 Compound Interest
 Annuities
 Investments  part 1
 Investments  part 2
 Preparation for Midterm Exam
 Midterm Exam
 Retirement Plans
 Mathematics of Pricing
 Taxes
 Consumer Mathematics
 Insurance and Risk Management
 Evaluating Projected Cash Flows
 Preparation for Final Exam

Description 
 Interactive Lectures
 Practical Sessions
 Excersises
 Presentation
 Problem solving
 Assignments

Description (%) 
Quiz  2  20  Homework  5  5  Midterm Exam(s)  1  30  Final Exam  1  40  +Participation  1  5 

Learning outcomes 
 Identify basic concepts in financial mathematics: simple intrest and simple discount vs. compound interest, annuities, capital budgeting, depreciation
 Distinguish between simple and compound interest
 Compute various calculations related to the interest, annuities, debt repayments, bonds
 Explain the meaning and significance of capital budgeting, methods of capital budgeting and its calculation
 Discuss the concept of life insurance and compute life annuities calculations

TEXTBOOK(S) 
 Timothy J. Biehler. (2008). The mathematics of money  Math for business and personal finance decisions. 1st edition. McGraw Hill.

ECTS (Allocated based on student) WORKLOAD 
Lecture (14 weeks x Lecture hours per week)  15  2  30  Laboratory / Practice (14 weeks x Laboratory/Practice hours per week)  15  1  15  Midterm Examination (1 week)  1  2  2  Final Examination(1 week)  1  2  2  Preparation for Midterm Examination  1  20  20  Preparation for Final Examination  1  30  30  Assignment / Homework/ Project  2  10  20  Seminar / Presentation    0 
