Financial Mathematics I

Subject ACTL20001 (2011)

Note: This is an archived Handbook entry from 2011.

Credit Points: 12.50
Level: 2 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2011:

Semester 1, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: Two 1-hour lectures and a 1-hour tutorial per week
Total Time Commitment: Not available
Prerequisites:

One of:
Corequisites: None
Recommended Background Knowledge: Please refer to Prerequisites and Corequisites.
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Contact

To be advised
Subject Overview:

Topics include compound interest functions; valuation of a series of payments, including where the cash flows and/or the force of interest are continuous functions of time; equations of value; loans repayable by instalments; characteristics of major asset types; and discount valuation of fixed interest securities, ordinary shares and property, including effects of tax.
Objectives:
  • Apply relevant pre-requisite mathematical knowledge in the solution of a range of practical problems;
  • Describe and apply the main methods of finding the accumulation or present value of money under simple and compound interest and discount;
  • Derive and apply formulae to calculate the accumulation or present value of a series of payments, including the cases of continuous payments and variable interest rates
  • Analyse and solve equations of value for rates of interest
  • Calculate rates of return on investment portfolios using methods employed by actuaries
  • Construct and analyse a loan schedule, including cases when terms of a loan are altered;
  • Explain the key features of the main types of financial assets, including shares, bonds, property and derivatives
  • Perform compound interest calculations relating to financial assets, including the calculation of price and yield
    		•
    Assessment:

    A 2-hour end-of-semester examination (70%), two assignments totalling not more than 2000 words (20%), and a 45 minute mid-semester examination (10%). Satisfactory completion of this subject requires a 50% pass in the end of semester examination
    Prescribed Texts: You will be advised of prescribed texts by your lecturer.
    Recommended Texts:

    Information Not Available
    Breadth Options:

    This subject potentially can be taken as a breadth subject component for the following courses:

    You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

    Fees Information: Subject EFTSL, Level, Discipline & Census Date
    Generic Skills:

    • High level of development: written communication; problem solving; application of theory to practice; synthesis of data and other information; use of computer software.

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