TROY UNIVERSITY
MASTER SYLLABUS
SORRELL COLLEGE OF BUSINESS
FIN 3333
Financial Mathematics
Prerequisites
MTH 1112 or higher
Description
Analysis of time value of money as it applies to loans, securities, banks, annuities, and insurance.
Objectives
On completion of the course, the student should be able to:
1. Apply the mathematics of simple interest as it pertains to bank loans and business credit.
2. Apply the mathematics of bank discount as it pertains to loans that require interest to be
paid at the origination of loan.
3. Apply the mathematics of the discounting process in the money market as it pertains to
treasury bills, commercial paper, and banker acceptances.
4. Apply the mathematics of the compounding process with the time value of money as it
pertains to annuities of retirement plans, amortization, sinking funds, installment financing,
mortgage financing, leasing, and insurance.
5. Explain the operations of the bond market.
6. Apply the mathematics of bond yields, discounts, and premiums, including the accounting
process involved.
7. Explain the mathematics of capital budgeting.
8. Apply the mathematics of the valuation of common stocks using the discounted cash flow
method and the constant-growth valuation model.
Purpose
To provide an advanced application of concepts involving the time value of money. This course
addresses the mathematics of the money and capital financial markets.
Approved Texts
Guthrie, G. C., & Lemon, L. D. (2004 or current). Mathematics of interest rates and finance (1st
ed.). Upper Saddle River, NJ: Prentice Hall.
Master Syllabi are developed by the senior faculty in each business discipline. This Master Syllabus must be used as the basis for developing the
instructor syllabus for this course, which must also comply with the content specifications outlined in the Troy University Faculty Handbook.
The objectives included on this Master Syllabus must be included among the objectives on the instructor’s syllabus, which may expand upon the
same as the instructor sees fit. The statement of purpose seeks to position the course properly within the curriculum and should be consulted by
faculty as a source of advisement guidance. Specific choice of text and other details are further subject to Program Coordinator guidance.
1 August 2005
Master Syllabus: FIN 3333
2
Stephen G. Kellison, The Theory of Interest, 2nd edition, IRWIN, ISBN-13: 9780256091502,
ISBN-10: 0256091501
Supplements
As deemed appropriate.
Troy University Faculty Handbook (2010): Section 3.9.2.8 [extract] — essential elements of the syllabus (somewhat modified for space):
1. Course title
2. Course number +
section
3. Term
4. Instructor
5. Prerequisites
6. Office hours
7. Class days, times
8. Classroom
location
9. Office location +
e-mail address
10. Office telephone
11. Course
description,
objectives
12. Text(s)
13. Other materials
14. Grading methods, 16. General supports
criterion weights,
(computer works,
make-up policy,
writing center)
mid-term grade
17. Daily assignments,
reports
holidays, add/drop
15. Procedure, course
& open dates, dead
requirements
day, final exam
18. ADA statement
19. Electronic device
statement
20. Additional
services,
statements
21. Absence policy
22. Incomplete-work
policy
23. Cheating policy
24. Specialization
requirements
(certification,
licensure, teacher
competencies)