MATH 170(F) Mathematics of Finance (Q)
This course investigates the mathematics underlying various problems that arise in personal, consumer, and business finance. Topics include simple and compound interest, periodic loans (such as home mortgages and auto loans), present value, future value, bank discounting and rediscounting, amortization, sinking funds, corporate and municipal bonds, perpetual annuities, taxes (including itemization), life annuities, depreciation, inflation, and the basic mechanics of life insurance. Students are required to carry out several spreadsheet projects; instruction on the use of these systems is provided as needed. Although the course does not prepare students for the examinations of the Society of Actuaries, it is basically actuarial in approach, not a course in "how to invest." Format: lecture. Evaluation will be based primarily on performance in class quizzes, spreadsheet exercises, and exams. Prerequisites: Mathematics 103 or equivalent. Enrollment limit:42 (expected: 42). Not open to first-year students. Not open to junior or senior Mathematics majors except by permission of instructor. Not open on a pass/fail basis.
Hour: V. HILL