COURSE UNIT TITLE

: FINANCIAL MATHEMATICS

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
IST 3002 FINANCIAL MATHEMATICS COMPULSORY 2 2 0 5

Offered By

Statistics

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR GÜÇKAN YAPAR

Offered to

Statistics
Statistics(Evening)

Course Objective

The main objective of this course is to teach the fundamentals of finance with necessary mathematical operations in financial mathematics. Also another goal which is willing to reach as teaching students saticfactory knowledge to choose wisely among alternatives which are emerge in financial circumstances.

Learning Outcomes of the Course Unit

1   Interest and discount rate in respect of simple and compound interest operations
2   Unknown values by equation of value
3   Present and accumulated value functions
4   Non-annual interest and discount operation problems
5   Functions of annuity
6   Financial calculations related to yield rate
7   Problems related to amortization schedules and sinking fund

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Time Value of Money, Simple and Compound Interest Concept.
2 The Concept of Present and Accumulated Value.
3 Effective and Nominal Interest Rates, Effective and Nominal Discount Rates. The Force of Interest
4 Equation of value and to find unknown time and unknown interest rate.
5 The Concept of Annuity. Annuity Due and Annuity Immediate.
6 Deferred Annuity and Perpetuities.
7 To find unknown time and unknown interest rate for annuity problems.
8 Varying Annuities and Applications.
9 Continuous Annuities and Applications.
10 Non-annual Annuities and problem solving.
11 Discounted Cash Flow Analysis.
12 Nominal vs. Real Interest Rate.
13 Investment Fund.
14 Loans: the amortization and the sinking fund Methods.

Recomended or Required Reading

Textbook(s):
S. G. KELLISON, The Theory of Interest, 2nd Edition, Mc Graw Hill, 1991.
Supplementary Book(s):
C. Ruckman and J. Francis, Financial Mathematics, 2th Edition, BPP.

Planned Learning Activities and Teaching Methods

The course consists of lecture, class discussion and problem solving.

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 VZ Vize
2 FN Final
3 BNS BNS VZ * 0.40 + FN * 0.60
4 BUT Bütünleme Notu
5 BBN Bütünleme Sonu Başarı Notu VZ * 0.40 + BUT * 0.60


Further Notes About Assessment Methods

None

Assessment Criteria

To be announced.

Language of Instruction

Turkish

Course Policies and Rules

Attendance to at least 70% for the lectures is an essential requirement of this course and is the responsibility of the student. It is necessary that attendance to the lecture and homework delivery must be on time. Any unethical behavior that occurs either in presentations or in exams will be dealt with as outlined in school policy. You can find the undergraduate policy at http://web.deu.edu.tr/fen.

Contact Details for the Lecturer(s)

DEU Faculty of Science, Department of Statistic
e-mail: guckan.yapar@deu.edu.tr
0232 301 85 59

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 14 3 42
Preparations before/after weekly lectures 14 2 28
Preparation for midterm exam 1 18 18
Preparation for final exam 1 28 28
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 120

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10PO.11PO.12PO.13PO.14
LO.15445553
LO.25455553
LO.35435553
LO.45445553
LO.55445553
LO.65455553
LO.75455553

CONTACT INFORMATION
Dokuz Eylül Üniversitesi Cumhuriyet Bulvarı No: 144 35210 Alsancak / İZMİR
Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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