College of Administration and Economics

The main importance of Financial mathematics is driven from its rule through the process of decision making for different field such as banking and investment to find out the best option among the different option.

It provides students with a solid grounding in the group of mathematical investment instruments and experience of its application to the analysis of financial transactions like interest.        

Having successfully completed this module, student will be able to demonstrate knowledge and understanding of:

- Definition of the Interest rate and different type of it with various applications.

-Define and use standard compound interest functions.

- Calculate the value and accumulated value of a cash flow of equal and unequal payments.

Describe how a loan may be repaid by regular installments of interest and capital. -

ئەرکەکانی قوتابی

به‌رپرسیارێتی قوتابی سه‌باره‌ت به‌ کۆرسه‌که‌ :

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ڕێگه‌ی وانه‌‌ ووتنه‌وه‌

مامۆستا ڕێگه‌ی وانه‌‌ ووتنه‌وه‌ ئەم ئامرازە بکار دهێنت ‌:‌

سیستەمی هه‌ڵسه‌نگاندن

جۆری هه‌ڵسه‌نگاندن (تاقیکردنه‌وه‌کان یان ئه‌زموونه‌کان) چه‌ند نمره‌ی له‌سه‌ره و چۆن نمره‌کان دابه‌شد‌کرا:

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1.  Shao S. P. & SHAO L. Mathematics of management and finance 8th ed. Ohio south-western college publishing.
2. Nesen  J(2012). University ofLeeds. Financial Mathematics 1.
3. Buchanan J.R. (2012) An undergraduate introduction to financial Mathematics. 3th Ed new jersey: world scientific publishing co.   

• Definition of the Interest & its law
• The interest types
• The simple interest and Sum
• The applications of simple interest
• The applications of simple interest
• Solving period issues/Exact Time method
• Solving period issues/ the Exact interest
• Solving period issues/ Approximate Time method – The commercial or ordinary Interest
• The applications of Approximate Time method – The commercial or ordinary Interest
• Tiger method/ the Interest on different amounts with different Durations
• The applications of Tiger method
• The compound interest/ the difference between simple & compound interest
• The applications of compound interest
• The applications of compound interest
• The nominal & real interest Rate
• The time value of money / present value- future value
• Compounding and discounting their applications
• Annuities and its applications
• Annuities and its applications
• Loans and its applications, Equation of value corresponding to periodic repayment of a loan
• Loan and its applications
• Generalized cash flow modeling, Equation of value for a cash flow problem and methods of solution
• Stock valuation
• bond valuation
• Investment project appraisal methods and Measurements of investment performance
• Net present value
• Internal rate of return
• Payback period
• Accounting Rate of return