INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of Management
2016-2017

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
Week
Topic
  1. Simple interest
  2. Simple discount
  3. Compound interest
  4. Compound interest
  5. Annuities
  6. Annuities
  7. Preparation for midterm exam
  8. Midterm exam
  9. Investments
  10. Investments
  11. Mathematics of pricing
  12. Insurance and risk management
  13. Discounted cash flow analysis
  14. Discounted cash flow analysis
  15. Preparation for final exam

LABORATORY/PRACTICE PLAN
Week
Topic

    TEACHING/ASSESSMENT
    Description
    • Interactive Lectures
    • Practical Sessions
    • Excersises
    • Problem solving
    Description (%)
    Method Quantity Percentage (%)
    Quiz420
    Midterm Exam(s)130
    Final Exam140
    +Participation1010
    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)
    • Robert L. Brown, Steve Kopp, Petr Zima. (2011). Mathematics of Finance. 7th 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)133
    Preparation for Midterm Examination11515
    Preparation for Final Examination13030
    Assignment / Homework/ Project41040
    Seminar / Presentation 0
    Total Workload: 135
    ECTS Credit (Total workload/25): 5