Objectives and competences
Students:
1. Gain the ability to solve problems that involve percentages.
2. Enhance their theoretical knowledge in the field of financial mathematics.
3. Acquire mathematical knowledge and skills needed for quantitative and qualitative study of processes that are connected with simple and compound interest.
4. Gain the ability to apply their theoretical knowledge in practice in the valuation of risk-free assets such as bank deposits.
5. Make critical judgements based on a sound theoretical base.
Content (Syllabus outline)
1. Percentage and equations, progressions
2. Interest and interest rate
3. Simple interest
4. Compound interest
5. Periodic payments
6. Interest and exponential function
Learning and teaching methods
• Lectures,
• Technical demonstration,
• Active work
Intended learning outcomes - knowledge and understanding
Development of knowledge and understanding:
Students:
1. Understand basic concepts of simple and compound interest.
2. Learn to apply different methods of compounding in problem solving from financial practice.
3. Enhance their knowledge in the field of financial mathematics.
4. Can demonstrate awareness of ethical issues in the field of banking practice.
5. Are able to discuss ethical issues in relation to personal beliefs and values.
Cognitive/Intellectual skills:
Students:
1. Can select appropriate method for problem solving and are able to evaluate the importance and significance of the result.
2. Can identify key aspects of problem from different view points.
3. Develop greater independence of thought and the ability to solve problems.
Intended learning outcomes - transferable/key skills and other attributes
Key/Transferable skills
Students:
1. Upgrade the ability to become an autonomous learner.
2. Develop professional ethics.
3. Develop learning techniques and strategies for individual study, permanent reflection and evaluation.
Readings
Obvezna študijska literatura (Compulsory textbooks):
1. Marovt J., Breznik K. (2014). Praktikum iz poslovno-finančne matematike, FNM, Maribor.
2. Indihar S., Kavkler I., Mastinšek M. (2002). Matematika za ekonomiste 1.del, EPF, Maribor.
3. Čibej J. A. (2001). Matematika za računovodje in finančnike, Zveza računovodij, finančnikov in revizorjev Slovenije, Ljubljana.
Dodatna študijska literatura (Additonal textbooks):
4. Ihrig H. (2003). Finanzmathematik: Intensivkurs, Oldenburg, Muenchen.
5. Brown R. L., Zima P. (1997). The Mathematics of Finance, McGraw-Hill, 2nd ed..
6. Marovt J. (2009). Gradivo pri predmetu Finančna matematika: naloge z rešitvami, EPF, Maribor.
Prerequisits
Business mathematics
Additional information on implementation and assessment 90% - written examination;
10% - active participation at lectures and tutorials
Student may replace the written examination with two term examinations which are equivalent to the written examination.
