INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Banking and Finance
2015-2016

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
5 119 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
Week
Topic
  1. Simple Interest
  2. Simple Discount
  3. Compound Interest
  4. Annuities
  5. Investments - part 1
  6. Investments - part 2
  7. Preparation for Midterm Exam
  8. Midterm Exam
  9. Retirement Plans
  10. Mathematics of Pricing
  11. Taxes
  12. Consumer Mathematics
  13. Insurance and Risk Management
  14. Evaluating Projected Cash Flows
  15. Preparation for Final Exam

LABORATORY/PRACTICE PLAN
Week
Topic

    TEACHING/ASSESSMENT
    Description
    • Interactive Lectures
    • Practical Sessions
    • Excersises
    • Presentation
    • Problem solving
    • Assignments
    Description (%)
    Method Quantity Percentage (%)
    Quiz220
    Homework55
    Midterm Exam(s)130
    Final Exam140
    +Participation15
    Total: 100
    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
    Activities Quantity Duration (Hour) Total Work Load
    Lecture (14 weeks x Lecture hours per week)15230
    Laboratory / Practice (14 weeks x Laboratory/Practice hours per week)15115
    Midterm Examination (1 week)122
    Final Examination(1 week)122
    Preparation for Midterm Examination12020
    Preparation for Final Examination13030
    Assignment / Homework/ Project21020
    Seminar / Presentation 0
    Total Workload: 119
    ECTS Credit (Total workload/25): 5