Handbook

ACTL20001 Financial Mathematics I

Credit Points: 12.5
Level: 2 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2017:

Semester 1, Parkville - Taught on campus.Show/hide details
Pre-teaching Period Start not applicable
Teaching Period 27-Feb-2017 to 28-May-2017
Assessment Period End 23-Jun-2017
Last date to Self-Enrol 10-Mar-2017
Census Date 31-Mar-2017
Last date to Withdraw without fail 05-May-2017


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:

Estimated total time commitment of 170 hours.

Prerequisites:

One of:

• A total of 135 or better in MAST10018 Linear Algebra Extension Studies and MAST20026 Real Analysis, and a pass in MAST10019 Calculus Extension Studies

• a total of 135 or better in MAST10007 Linear Algebra and MAST20026 Real Analysis, with a pass in each subject, and a pass in MAST10019 Calculus Extension Studies

• a total of 135 or better in and MAST10018 Linear Algebra Extension Studies and MAST10009 Accelerated Mathematics 2, with a pass in each subject;

• an average mark of 75 or better in MAST10006 Calculus 2 and MAST10018 Linear Algebra Extension Studies;

• an average mark of 60 or better in MAST10008 Accelerated Mathematics 1 and MAST10009 Accelerated Mathematics 2, with a pass in each subject;

• an average mark of 75 or better in MAST10006 Calculus 2 and MAST10007 Linear Algebra;

• a total of 135 or better in MAST10007 Linear Algebra and MAST10009 Accelerated Mathematics 2, with a pass in each subject;

• a total of 135 or better in MAST10008 Accelerated Mathematics 1 and MAST10006 Calculus 2, with a pass in each subject

• an average mark of 60 or better in MAST10013 UMEP Mathematics for High Achieving Students and MAST10009 Accelerated Mathematics 2, with a pass in each subject

Corequisites:

None

Recommended Background Knowledge:

Please refer to Prerequisites and Corequisites.

Non Allowed Subjects:

None

Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Coordinator

Prof Daniel Dufresne

Contact

dufresne@unimelb.edu.au

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

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
Assessment:
  • 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.
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.

Recommended Texts:

Compound Interest and its Applications, Fitzherbert and Pitt, 2013

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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