Financial Mathematics I.

Catalog description

This course provides understanding of fundamental concepts in financial mathematics and how those concepts are applied in calculating present and accumulated values for various streams of cash flows as a basis for future use in reserving, valuation, pricing, asset/liability management, investment income, capital budgeting, and valuing contingent cash flows. Topics include interest rates, determinants of interest rates, and interest-related concepts, annuities involving both level and varying payments, and varying interest rates, projects appraisal evaluation, loans and loan payment methods, bonds and bond evaluations. This course, together with MATH 122 , prepares students for the Society of Actuaries Financial Mathematics examination. Prerequisite: MATH 053 with a “C-“ or better or permission of instructor.