| Course title | Financial Mathematics |
|---|---|
| Course code | KMI/FINMA |
| Organizational form of instruction | Lecture + Lesson |
| Level of course | Bachelor |
| Year of study | 2 |
| Semester | Summer |
| Number of ECTS credits | 6 |
| Language of instruction | Czech |
| Status of course | Compulsory-optional |
| Form of instruction | Face-to-face |
| Work placements | This is not an internship |
| Recommended optional programme components | None |
| Lecturer(s) |
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| Course content |
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1) Basic terminology, percentage, progressions. 2) Simple interest, bank discount, term standards. 3) Compound and continuous interest, combination of simple and continuous interest. 4) Inflation, real and effective annual interest rate. 5) Time value of money, cash-flow system. 6) Saving models. 7) Debt redemption, APR. 8) Complex saving models. 9) Depreciation of assets. 10) Modelling of bank products in MS Excel. 11) Portfolio, yield measurement. 12) Risk measurement. 13) Random interest rate.
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| Learning activities and teaching methods |
Monologic (reading, lecture, briefing), E-learning
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| Learning outcomes |
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The course introduces to the basic terminology, principles and calculating operations of financial mathematics and their applications in concrete problems. The course covers the key topics such as time value of money, simple and compound interest, regular payments - annuities and loan redemption, and yield and risk measurements of portfolio. Moreover, another aim of the course is to introduce to the use of MS Excel in modelling building society savings, amortisation mortgage schedules, calculation of APR etc.
Students understand the basic principles of financial mathematics, they are able to compare various financial products and to use effectively the relevant software in their financial computation. |
| Prerequisites |
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Prerequisites:Theory of Probability and Statistics 1 (TPS1, TPS1A)
KMI/CM1 ----- or ----- KMI/KMATA ----- or ----- KMI/KMATI ----- or ----- KMI/MATEA ----- or ----- KMI/MATI ----- or ----- KMI/MATIA ----- or ----- KMI/M1 ----- or ----- KMI/M1A ----- or ----- KMI/YMATI and KMI/CM1 ----- or ----- KMI/KMATA ----- or ----- KMI/KMATI ----- or ----- KMI/MATI ----- or ----- KMI/MATIA ----- or ----- KMI/M1 ----- or ----- KMI/M1A ----- or ----- KMI/YMATI |
| Assessment methods and criteria |
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Combined exam
Zápočet: 2 written tests (calculator) Examination: written (computer) |
| Recommended literature |
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| Study plans that include the course |
| Faculty | Study plan (Version) | Category of Branch/Specialization | Recommended semester | |
|---|---|---|---|---|
| Faculty: Faculty of Economics | Study plan (Version): Accounting and Financial Management (4) | Category: Economy | 2 | Recommended year of study:2, Recommended semester: Summer |