Financial Mathematics (4cr)

Objectives (course unit)

Calculating compound interest, recurring deposits and their applications. Investment calculations and financing methods.

Content (course unit)

Students understand the difference between simple interest and compound interest calculation. Students can calculate compound interest and its applications. They examine various financing options and feasibility comparisons between the options. Students are able to do investment calculations by using the present value method, the method of internal interest rate and annuity method. In addition, they can interpret results generated by different methods and make comparisons between them. Students know how to do loan calculations by means of various intallments of a loan, compare and analyse the results. They understand the purpose and significance of effective interest rate in financial statements. They can apply and make use of spreadsheet programme in financial mathematics.

Prerequisites (course unit)

Basics of Financial Mathematics.

Exam schedules

Kurssin tarkka aikataulu ilmoitetaan aloitusluennolla ja Moodlealustalla

Assessment methods and criteria

Tenttipisteiden perusteella arviointi 0-5

Assessment scale

0-5

Teaching methods

Luennot, laskuharjoitukset laskimen avulla sekä taulukkolaskentaohjelmalla (Excel).

Learning materials

Kirja: Saaranen, Kolttola, Pösö: Liike-elämän matematiikka (13. uudistettu painos) Moodlessa oleva lisämateriaali

Further information

Not applicable.