UCT BUS2024H-Actuarial Science I: Financial Mathematics

Status
Second year status, one semester spread over the year, 2 lectures per week, 1 tutorial every second week.
Convener : Dr S. Mataramvura
Prerequisites

ACC1006F/S & ACC1011S (60% average)
ECO1010F & ECO1011S (60% average)
STA1006S (70%)
MAM1000W (70%)

Course Outline
The aim of the course is to provide a grounding in financial mathematics and some simple applications. Topics covered are cash flow models for financial transactions, compound interest and discounting, present values and accumulations of streams of payments, nominal and effective rates, compound interest functions, equations of value, loan schedules, project appraisal techniques, basic types of assets, pricing methods, the term structure of interest rates and stochastic interest rate models.
Duly Performed Requirements
An overall average of 40% for class-work.
Assessment

Tutorials and Tests 40%
Examination (3hr) 60%