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UNIVERSIDAD DE ESPECIALIDADES ESPÍRITU SANTO
FACULTAD DE ESTUDIOS INTERNACIONALES
SYLLABUS
ENGLISH VERSION
FOR DAC 11 VER 19 05 08
SUBJECT : FINANCIAL MATH
FACULTY: Fernando Ruíz
CONTACT HOURS: 48
YEAR: 2008
DAYS: Monday-Thursday
ROOM
CODE : UFIN 220
CREDITS: 3 UEES (S.N.C.C.
4.8)
NON-CONTACT HOURS: 96
PERIOD: SUMMER
SCHEDULE: 07:30 – 08:50
SYLLABUS DATE June 10,
2008
1. COURSE DESCRIPTION
This course will help students to understand the concept of time value of money and learn
to handle time lines as a tool to visualize and analyze financial problems.
2. JUSTIFICATION
This course contains basic mathematical tools necessary for further, more advanced
financial courses, and project evaluation.
3. OBJECTIVES
A. GENERAL
Handle different concepts, such as interest, present value, future value, time or payment
period. Learn to calculate simple interest, compound interest and continuous capitalization
methods such as: annuities, amortization and bonds.
B. SPECIFIC
 Understand the concept of Time Value of Money
 Understand the concept of Interest
 Understand and apply the concept of Simple Interest
 Understand and apply the concept of Compound Interest
 Understand and apply the concept of Annuities.
4. COMPETENCIES
 To Identify different mathematical tools for financial use
 To demonstrate solving of various types of financial issues regarding flows of
payments, debts and interests.
 To elaborate abstraction and mathematical competencies
5. COURSE CONTENT OUTLINE
DATE
SPECIFIC
COMPETENCIES
CONTENTS
Introduction to
Basic Ratios,
proportions,
depreciation,
Commercial
Discounts, Cash
payment discounts,
Retailing price
Differentiates all types
Percentages,
of interest rates and the Interest rates,
structure of them.
Structure of Interest
rates.
NON-CONTACT
HOURS
ASSESMENT
JULY 02 The student reviews
previous knowledge of
algebra and business
math.
JULY 03
JULY 07
Probes the
understanding and
application of Time
Value of Money and
simple interest
JULY 08
JULY 09
JULY 10 Applies the Simple
JULY 14
interest theory to
equation of value
Differentiates Simple
Interest and Simple
discount, Interest rates
and discounts rates
JULY 15
The time value of
Money
Introduction to
Simple Interest
The simple interest
amount
Real & commercial
Interest
Exact & aprox. time
calculations
Promissory notes
and commercial
paper.
Present value of a
Debt
Equations of value
Simple Discount,
Simple discount with
simple interest
Discount on
Commercial paper
Partial payments
Commercial Rule
Banking Rule
JULY 16 Identifies Simple
Compound Interest
Interest and Compound Compound Amount
Interest
JULY 17 Demonstrates the
ability to apply
Compound interest
formulas
JULY 21
Present value,
Interest calculation
Continuous
Compounding,
Nominal & effective
Interest rates
Read “Algebra de
Baldor”: Percentages,
conversions & indexes
1 hours
Reading & prepare to
class
Pag 1-35
OE
OE
2 hours
Quiz
WE
Study 2 hours
Reading & prepare to
class
Pag 35 - 55
1 hour
Quiz
Study 2 hours
OE
WE
Reading & prepare to
class
Pag 65 - 101
2 hours
OE
Reading & prepare to
class
Pag 55 - 63
1 hour
Reading & prepare to
class
Pag 103 - 191
3 hours
Homework 5 hours
Quiz
Study 2 hours
OE
OE
WE
Time & interest
rates calculations
Equivalent time
Equations of value
JULY 22
JULY 23
Quiz
Study 2 hours
Project (research and
make a paper)
WE
Presentation
Research: reading at
least 20 pages
JULY 24 Recognizes an annuity
situation, and compute
present values and
future values with
annuities
JULY 28
JULY 29
JULY 30 Applies Annuity and
compound interest
formulas to Differed
annuities
Amount & present
value of an annuity,
The periodic
payment
Due Annuities,
Differed Annuities,
Perpetuities
15 hours
Reading & prepare to
class
Pag 71 – 114 Schaum
Outline
4 hours
OE
Reading & prepare to
class
Pag 249 – 313
4 hours
OE
Quiz
Study 2 hours
WE
MID TERM
JULY 31
AUG 04
Introduction to
annuities
Ordinary annuities
Applies Annuity and
compound interest
formulas to Differed
annuities
Mixed annuities
AUG 05
Mixed annuities
AUG
06,07
AUG 11, Applies annuity
information, compound
12
Equations of Value
with Annuities
AUG
13,14
AUG
18,19
Interest on the value
of an asset
purchased
Debt consolidation
Amortization Fund
Depreciation
AUG 20
AUG 21
Review
Final Exam
Amortization &
amortization fund
interest formulas to real Amortization of a
life situations.
Debt
Amortization Chart
Homework
6 hours
Excercises
WE
Reading & prepare to
OE
class
Pag 315 - 345
Pag 124 – 143 Schaums
Outline
2 hours
Project (Excel research
and application)
10 hours
Reading & prepare to
class
Pag 345 – 367
Pag 180 - 194
2 hours
15 hours
Presentation
OE
6. METHODOLOGY
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Lectures will be given on each topic.
Students must read in advance of the class to be prepared for participation
There will be at least one quiz each week.
Pop quizzes could be taken at any time without notice.
Homeworks and projects will be given on advance.
No cell phones are allowed to be turned on in class.
Attendance policy complies with UEES rules and regulations
Only water may be taken into classrooms.
7. ASSESSMENT
Mid Term
Final Term
Quizzes
Homeworks and Projects
25%
25%
30%
20%
8. BIBLIOGRAPHY
8.1 REQUIRED
 Cisell, Cisell, Flashpohler “Mathematics of Finance”
 Mathematics of Finance, The Schaums Outline
8.2 COMPLEMENTARY
 Algebra de Baldor
9. FACULTY INFORMATION
NAME: Fernando Ruiz N.
.
ACADEMIC CREDENTIALS--UNDERGRAD: Ingeniero Civil de Industrias – Pontificia
Universidad Católica de Chile.
GRADUATE: MBA – Universidad Tecnica Federico Santa Maria
E – MAIL: fernandoruiz.ecoloimp@gmail.com
10.
Prepared by: Fernando Ruiz N.
Reviewed by: Dean Mónica Reynoso
Date: June 10, 2008
Date: June, 2008