Course Information


Course Information
Course Title Code Semester L+U Hour Credits ECTS
FINANCIAL MATHEMATICS UAKT203 3. Semester 2 + 2 3.0 6.0

Prerequisites None

Language of Instruction Turkish
Course Level Bachelor's Degree
Course Type Compulsory
Mode of delivery Computer aided oral presentation
Course Coordinator
Instructors Furkan BAŞER
Assistants
Goals Aim of this course is to teach basic concepts about interest and interest measurement which is used in financial instruments valuation, to give them the ability of how to find and evaluate different annuity values and about methods of paying loan in practice.
Course Content Measurement of interest; solution of interest problems; types of annuities; present value; accumulated value; general annuities; yield rates; amortization schedules and sinking funds.
Learning Outcomes 1) Know the measurement of interest and solve the problems in interest.
2) Formulate the methods about annuity valuation.
3) Formulate paying loan methods and to construct the schedule of paying loan methods.
4) Use interest rates in valuation of financial investment instruments.

Weekly Topics (Content)
Week Topics Teaching and Learning Methods and Techniques Study Materials
1. Week Basic Concepts About Interest; Accumulation and Amount Function Lecture; Question Answer; Problem Solving

 Homework
2. Week The Effective, Simple, Compound Rate Of Interest; Present Value Lecture; Question Answer; Problem Solving

 Homework
3. Week Nominal Rates of Interest and Discount; Forces of Interest and Discount Lecture; Question Answer; Problem Solving

 Homework
4. Week Solution of Problems In Interest Lecture; Question Answer; Problem Solving

 Homework
5. Week Annuity-immediate, Annuity-due, Annuity Values on Any Date Lecture; Question Answer; Problem Solving

 Homework
6. Week Perpetuities Lecture; Question Answer; Problem Solving

 Homework
7. Week Nonstandard Terms and Interest Rates, Unknown Time, Annuities Not Involving Compound Interest Lecture; Question Answer; Problem Solving

 Homework
8. Week Midterm exam Question Answer
9. Week Annuities Payable At A Different Frequency Than Interest İs Convertible, Continuous Annuities Lecture; Question Answer; Problem Solving

 Homework
10. Week Basic Varying Annuities, More General Varying Annuities Lecture; Question Answer; Problem Solving

 Homework
11. Week Continuous Varying Annuities Lecture; Question Answer; Problem Solving

 Homework
12. Week Methods Of Paying Loan, Finding The Outstanding Loan Balance, Amortization Schedules Lecture; Question Answer; Problem Solving

 Homework
13. Week Sinking Fund Schedules, Correlation Between Amortization and Sinking Fund Lecture; Question Answer; Problem Solving

 Homework
14. Week Discounted Cash Flow Analysis, Uniqueness of The Yield Rate, Reinvestment Rates Lecture; Question Answer; Problem Solving

 Homework
15. Week Preparation for Final Exam Lecture; Question Answer; Problem Solving

 Homework
16. Week Final exam Question Answer

Sources Used in This Course
Recommended Sources
Browerman S.A., Mathematics of Investment and Credit, Actex Pub., Connecticut, 2007.
Kellison S.G., The Theory of Interest, Irwın Inc., Boston, 3rd Edition, 2009.
Korkmaz T., Excel Uygulamalı Finans Matematiği, Ekin Kitabevi Yayınları, 2009.
Vaaler D., Mathematical Interest Theory, Actex Pub., Connecticut, 2009.

Relations with Education Attainment Program Course Competencies
Program RequirementsContribution LevelDK1DK2DK3DK4
PY150000
PY250000
PY350000
PY450000
PY550000

*DK = Course's Contrubution.
0 1 2 3 4 5
Level of contribution None Very Low Low Fair High Very High
.

ECTS credits and course workload
Event Quantity Duration (Hour) Total Workload (Hour)
Course Duration (Total weeks*Hours per week) 14 4
Work Hour outside Classroom (Preparation, strengthening) 14 3
Homework 4 4
Presentation (Including Preparation Time) 2 4
Midterm Exam 1 1
Time to prepare for Midterm Exam 1 24
Final Exam 1 1
Time to prepare for Final Exam 1 24
Total Workload
Total Workload / 30 (s)
ECTS Credit of the Course
Quick Access Hızlı Erişim Genişlet
Course Information
  • Course Information
  • Weekly Topics (Content)
  • Sources Used in This Course
  • Relations with Education Attainment Program Course Competencies
  • ECTS credits and course workload