BKF_FIMA Financial Mathematics

Faculty of Economics and Administration
Autumn 2023
Extent and Intensity
13/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Luděk Benada, Ph.D. (lecturer)
Guaranteed by
Ing. Luděk Benada, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Sat 14. 10. 8:00–11:50 P104, Fri 20. 10. 12:00–15:50 P104, Fri 24. 11. 16:00–19:50 P102
Prerequisites (in Czech)
FORMA(K)
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
This course consists of definition of the subject, conceptions and methods, basic maths, which is necessary for understanding and defining models of forming relations of financial mathematics, such as simple and compound interest, short-term and long-term savings, pensions and credits, checking accounts interest and bank overdrafts interest. The course is drawn up to explain fundamental relations and individual expressions for the needs of other courses.

The main objectives of the course are the following:
- understanding fundamentals of financial mathematics, understanding principles of interest, use of interest in fundamental areas of financial mathematics;
- applying acquired knowledge to the related areas which are not discussed within this course.
Learning outcomes
Student will be able to:
- understand and apply the concept of time value of captal;
- make decisions on time-diverging cash flows;
- interpret an informative content of interest rate;
- apply variations of interest calculation: after-term and pre-term (linear, compound, exponetial, combined);
- understand the value of real and nominal capital depending on the form of taxation and price level;
- effectively work with the annuities on which the whole field of finance is based.
Syllabus
  • Thematic plan – lectures:
  • Thematic plan of tutorials:
  • 1. 1st Tutorial: Introduction to interest calculation (basic concept of interest, ahead and after interest, linear, exponential and combined interest calculation and their interdependence, taxation and real interest).
  • 2. 2nd Tutorial: Calculation of annuity with the focus on future value (problematic with interest period, various methods of interest calculation, taxation and real value of capital in the process of saving).
  • 3. 3rd Tutorial: Calculation of annuity with the focus on present value (problematic with interest period, various methods of interest calculation, taxation and real value of capital in the process of annuity payment).
Literature
    required literature
  • Skripta FIMA
  • Mathematics of Interest Rates and Finance. Pearson Education Limited, 2014. ISBN 1-292-03983-3. info
    recommended literature
  • BUCHANAN, J. Robert. An undergraduate introduction to financial mathematics. 3rd ed. New Jersey: World Scientific, 2012, xviii, 464. ISBN 9789814407441. info
Teaching methods
The course consists of tutorials. The subject of each tutorial is based on the specific topic in the syllabus. The course assumes a high degree of self-study. Teaching is based on the interaction of lecturer and audience, where illustrative examples are solved together.
Assessment methods
The exam is in the written form. The exam will take place during the exam period. The issue of the test corresponds to the content of the tutorials and the mandatory literature, in particular, the electronic script, available in the study materials. To pass the exam a 60 % success rate is required. The student is obliged to use the written exam dates, which will be available already during the semester, so that he has the possibility to take them into account with regard to other exams. The number of exam dates will be fixed and will be based on internal regulations. Additional dates will not be listed! !!! If the student does not register for any regular term, he will be graded "-" for the possibility of registering for a remedial term in accordance with internal regulations.
The grading scheme used for evaluation of students’ knowledge is the following:
A= 92 – 100 %
B= 84 – 91 %
C= 76 – 83 %
D= 68 – 75 %
E= 60 – 67 %
F= less than 60 %

Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination.
If a student participates in an internship abroad and is granted an ISP, he will be allowed to take the final exam individually after agreement with the teacher.

Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
Information on the extent and intensity of the course: tutorial 12 hodin.
Credit evaluation note: k=1,33.
Teacher's information

Recommended study schedule for combined studies

1st - 2nd week of self-study (Interest - script)

3rd week 1st tutorial (Problems of interest calculation)

Week 5 self-study (Savings)

6th week 2nd tutorial (Annuity calculation - savings)

7th - 8th week of self-study (Pensions, loans)

9th week 3rd tutorial (Annuity calculation - Pensions, loans)

Note The schedule is indicative. The course of study itself will be modified according to the schedule in IS and depending on the tutorials.

Students must have studied the relevant chapters from the script, or DSO, so that attention can be paid to the more difficult and problematic parts of the material discussed and the solutions to individual examples (problems).

The course is also listed under the following terms Autumn 2009, Autumn 2010, Autumn 2011, Autumn 2012, Autumn 2013, Autumn 2014, Autumn 2015, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2022, Autumn 2024.
  • Enrolment Statistics (Autumn 2023, recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2023/BKF_FIMA