MA105 Mathematics of Finance

Overview

Simple Interest:Introduction - Terms with Symbols - Time Diagrams - Formulas - Decision Making - Time - Dates - Interest Bearing Notes vs. Non-Interest Bearing Notes - Interest Bearing Promissory Notes - Interest Bearing Notes Sold to Third Parties - Non-Interest Bearing Promissory Notes - Equations of Value - Partial Payments - Bank Discount:Introduction - Terms with Symbols - Time Diagrams - Formulas - Loans Using Bank Discounts - Simple Interest Rate vs. Bank Discount Rate - Derivation Formulas - Compound Interest:Introduction - Terms with Symbols - Time Diagram - Formulas - Graphical Comparison of Simple and Compound Interests - Finding N, The Total Number of Conversion Periods - Interest for Part of a Conversion Period - Using the Business Calculator to Solve for any Unknown - Effective Rates vs. Nominal Rates - Equations of Value

Ordinary Annuities and Extending Ordinary Annuities:Introduction - Terms With Symbols for Ordinary Annuities - Time Diagrams for Simple Ordinary Annuities - Determining N for Ordinary Annuities - Formulas for Ordinary Annuities - Using the Business Calculator to Solve for Any Unknown - Using the Ordinary Annuity to Solve Forborne, Deferred Annuities and Annuity Dues - Determining N and the Size of the Smaller Concluding Withdrawal or Payment - General Annuities - Applications of the Ordinary Annuity: Amortization and Sinking Funds:Introduction - Amortization - Terms for Amortization - Time Diagram for Amortization - Sinking Funds - Perpetuities and Capitalized Costs:Introduction - Perpetuities Terms with Symbols for Perpetuities - Time Diagram for Perpetuities - Review of Concepts Needed to Solve Problems - Solving Perpetuities - Capitalized Cost