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Financial Mathematics I (ACTL20001)

Undergraduate level 2Points: 12.5On Campus (Parkville)

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Overview

Year of offer2019
Subject levelUndergraduate Level 2
Subject codeACTL20001
Campus
Parkville
Availability
Semester 1
FeesSubject EFTSL, Level, Discipline & Census Date

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; financial analysis of loan contracts and investment projects; characteristics of major asset types.

Intended learning outcomes

  • 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 discounted 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
  • Construct and analyse a loan schedule, including cases when terms of a loan are altered;
  • Show how discounted cashflow techniques can be used in investment project appraisal;
  • Demonstrate a knowledge and understanding of real and money interest rates;
  • Explain the key features of the main types of financial assets, including shares, bonds, property and derivatives

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.

Eligibility and requirements

Prerequisites

One of:

  • a total of 150 (out of 200) or more across both
    Code Name Teaching period Credit Points
    MAST10006 Calculus 2
    Semester 1
    Semester 2
    12.5
    MAST10007 Linear Algebra
    Summer Term
    Semester 1
    Semester 2
    12.5
  • a total of 120 (out of 200) or more across both
    Code Name Teaching period Credit Points
    MAST10008 Accelerated Mathematics 1
    Semester 1
    12.5
    MAST10009 Accelerated Mathematics 2
    Semester 2
    12.5
    with a pass in each subject;
  • a total of 135 (out of 200) or more across both
    Code Name Teaching period Credit Points
    MAST10007 Linear Algebra
    Summer Term
    Semester 1
    Semester 2
    12.5
    MAST10009 Accelerated Mathematics 2
    Semester 2
    12.5
    with a pass in each subject;
  • a total of 135 (out of 200) or more across both
    Code Name Teaching period Credit Points
    MAST10008 Accelerated Mathematics 1
    Semester 1
    12.5
    MAST10006 Calculus 2
    Semester 1
    Semester 2
    12.5
    with a pass in each subject;
  • a pass in MAST10019 Calculus Extension Studies plus a total of 135 (out of 200) or more across both MAST10018 Liner Algebra Extension Studies and
    Code Name Teaching period Credit Points
    MAST20026 Real Analysis
    Semester 1
    Semester 2
    12.5
    with a pass in each subject;
  • a pass in MAST10019 Calculus Extension Studies plus a total of 135 (out of 200) or more across both
    Code Name Teaching period Credit Points
    MAST10007 Linear Algebra
    Summer Term
    Semester 1
    Semester 2
    12.5
    MAST20026 Real Analysis
    Semester 1
    Semester 2
    12.5
    with a pass in each subject;
  • a total of 135 (out of 200) or more across both MAST10018 Liner Algebra Extension Studies and
    Code Name Teaching period Credit Points
    MAST10009 Accelerated Mathematics 2
    Semester 2
    12.5
    with a pass in each subject;
  • a total of 150 (out of 200) or more across both MAST10018 Liner Algebra Extension Studies
    Code Name Teaching period Credit Points
    MAST10006 Calculus 2
    Semester 1
    Semester 2
    12.5
  • a total of 120 (out of 200) or more across both MAST10013 UMEP Mathematics for High Achieving Students and
    Code Name Teaching period Credit Points
    MAST10009 Accelerated Mathematics 2
    Semester 2
    12.5
    with a pass in each subject.

Corequisites

None

Non-allowed subjects

None

Recommended background knowledge

Please refer to Prerequisites and Corequisites.

Core participation requirements

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Assessment

Description

  • A 2-hour end-of-semester examination (70%)
  • Two assignments totalling not more than 2000 words (20%)
  • A 45 minute mid-semester examination (10%)
  • To pass this subject students must pass the end of semester examination.

Dates & times

  • Semester 1
    Principal coordinatorPing Chen
    Mode of deliveryOn Campus — Parkville
    Contact hoursTwo 1-hour lectures and a 1-hour tutorial per week
    Total time commitment170 hours
    Teaching period 4 March 2019 to 2 June 2019
    Last self-enrol date15 March 2019
    Census date31 March 2019
    Last date to withdraw without fail10 May 2019
    Assessment period ends28 June 2019

    Semester 1 contact information

Time commitment details

Estimated total time commitment of 170 hours.

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

    Recommended texts and other resources

    Compound Interest and its Applications, Fitzherbert and Pitt, 2013

  • Breadth options

    This subject is available as breadth in the following courses:

  • Available through the Community Access Program

    About the Community Access Program (CAP)

    This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.

    Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.

  • Available to Study Abroad and/or Study Exchange Students

    This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.

Last updated: 12 July 2019