Mathematics, Statistics & Computer Science
University of Wisconsin-Stout
Jarvis Hall Science Wing 231
Menomonie, WI 54751-0790
COURSE NUMBER/TITLE:
MATH-123 Finite and Financial Math
(Previously MATH-123 [355-123] Finite Mathematics)
CREDITS:
4
COURSE DESCRIPTION:
Topics in business‐related mathematical problem solving including
simple and compound interest, annuities, mortgages, supply and
demand, break‐even analysis. Best‐fit lines, problem solving with
systems of linear equations, linear programming, matrices, Gaussian
elimination, set theory, Venn Diagrams, permutations, combinations,
basic and conditional probability, expected value. Prerequisite: Math
placement level 2 or highe, or C+ or better in MATH-110 Intermediate
Algebra.
TEXTBOOK:
Finite Mathematics, 10th Ed., by Goldstein (adopted Fall 2010)
Previous:
Finite Mathematics, 9th Ed., by Goldstein (adopted 8/06)
Finite Mathematics, 7th Ed., by Lial (adopted F03)
Finite Mathematics an Applied Approach, 7th Ed., by Mizrahi & Sullivan (adopted F97)
Finite Math and Its Applications, 2nd Ed., by Farlow (prior to F97)
COURSE OBJECTIVES:
Upon successful completion of this course, the student will be able to:
1. Compute the solutions to the classic basic questions of mathematical economics: such as supply &
demand, percentages, proportions, break-even analysis, com-pound interest, and cost-benefit
analysis, using algebra.
2. Analyze and model complex systems with several constraints and variables, as they occur in
industry, commerce, finance or economics, by means of a system of linear equations or linear
inequalities, and interpret solutions in a business con-text.
3. Identify, model, and analyze uncertain circumstances, events, and outcomes, as they occur in
industry, commerce, finance or economics, by means of the theory of probability and combinatorics.
4. Identify, demonstrate understanding of, model, and analyze the financial instruments frequent not
only in industry, commerce, finance and economics, but also in ordinary life (such as loans,
mortgages, credit cards, and retirement savings) and demonstrate comprehension of common
financial mistakes and misconceptions.
5. Use computer software or other technology to solve problems occurring in industry, commerce,
finance or economics that are too complex to do by hand, while demonstrating some understanding
of the underlying algorithms or formulas.
COURSE OUTLINE:
Note: Unlike many mathematics courses, the topics listed can to a substantial extent be reordered to
match instructor preference.
1. Algebraic Fundamentals (Objectives 1, 2)
a. Basic Equation Solving
2.
3.
4.
5.
6.
7.
8.
b. Intersecting Two Lines
c. Review of Graphing
The Art and Science of Solving Word Problems (Objectives 2, 3, 4)
Introduction to Finance (Objectives 4, 5)
a. Simple Interest
b. Compound Interest
c. Annual Equivalent Rate
d. (Optional) Stocks and Bonds
e. The Time‐value‐of‐money Equation
f. Annuities and Perpetuities
g. (Optional) The Money Multiplier and Reserve Ratios
Solving Systems of Equations with Matrices (Objectives 2, 5)
a. Modeling Financial & Economics Problems with Systems of Equations
b. Matrices and Row Operations
c. Gaussian Elimination Methods
d. (Optional) Other Matrix Operations (e.g., Inverses)
Systems of Inequalities and Linear Programming (Objectives 2, 5)
a. Modeling Financial & Economic Problems with Inequalities
b. Solving 2‐variable problems by graphing
c. Solving many‐variable problems with technology
Set Theory & Combinatorics (Objectives 3, 5)
a. Sets and Set Operations
b. Venn Diagrams
c. Counting Principles (e.g., Multiplication and Exponent Principle, Factorials, and Tree Diagrams)
d. Combinations and Permutations
Probability (Objectives 3, 5)
a. Basic Principles
b. Complements and Unions
c. Independence
d. Probability Trees
e. Conditional Probability
f. Expected Value
At least one advanced topic of the instructor’s choice from the following:
a. Game Theory
b. Markov Chains
c. Logarithmic and Exponential Functions
d. Business Statistics
e. Digraph and Network Models
f. Computing in Binary
g. Quadratic Functions and their Optimization
h. Advanced Combinator
Updated 8/2015
Revised 10/2014
12/1971