INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Management
20162017
SYLLABUS 
Code 
Name 
Level 
Year 
Semester 
MAN 112 
Applied Mathematics 
Undergraduate 
1 
Spring 
Status 
Number of ECTS Credits 
Class Hours Per Week 
Total Hours Per Semester 
Language 
Compulsory 
5 
2 + 2 
135 
English 
Instructor 
Assistant 
Coordinator 
Elvisa Buljubašić, Senior Teaching Assistant 
Elvisa Buljubasic 
Elvisa Buljubašić, Senior Teaching Assistant 
[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
 Compound interest
 Annuities
 Annuities
 Preparation for midterm exam
 Midterm exam
 Investments
 Investments
 Mathematics of pricing
 Insurance and risk management
 Discounted cash flow analysis
 Discounted cash flow analysis
 Preparation for final exam

Description 
 Interactive Lectures
 Practical Sessions
 Excersises
 Problem solving

Description (%) 
Quiz  4  20  Midterm Exam(s)  1  30  Final Exam  1  40  +Participation  10  10 

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) 
 Robert L. Brown, Steve Kopp, Petr Zima. (2011). Mathematics of Finance. 7th 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  3  3  Preparation for Midterm Examination  1  15  15  Preparation for Final Examination  1  30  30  Assignment / Homework/ Project  4  10  40  Seminar / Presentation    0 
