MATH 253 - THEORY OF INTEREST
FALL 2005
Instructor: Mrs. L. Thiessen
Office: 581 CAB
Phone: 492-0569
Email: thiessen@math.ualberta.ca
Office Hours: Monday, Wednesday 12:30 – 2:00 p.m., or by appointment
Class time: MWF 2:00 – 2:50 p.m.
Classroom: 265 CAB
Textbook: The Theory of Interest by Stephen G. Kellison - 2nd Edition
Prerequisites: Math 115 or equivalent (101, 118)
Grading:
Assignments:
Midterm Exams:
Final Exam:
Midterm Exams:
10%
30% (15% each)
60%
Wednesday, October 5 in class,
Monday, November 7 in class.
Final Exam: Monday December 19, 2:00 – 4:00 p.m.
Deferred Exam: Saturday, January 14, 2006 9-11 a.m.
Grading: Course grades from A+ to F will be assigned at the end of the term
based on the student’s total accumulation of marks from assignments, midterm
exams and the final exam. The division of grades will be based on a
combination of an absolute standard and grading on a curve. Each grade will be
assigned from a range of approximately 4-5 percentage points. Students on the
borderline may have their grade adjusted at the discretion of the instructor. The
University of Alberta recommended distribution of grades for second year
courses will be used as a guide, but will not be rigidly applied.
Website: A website is accessible for students registered in this course. The
website will contain a variety of relevant information including assignments,
answer keys, practice questions and practice exams. The site may be accessed
from the following page:
http://www.ualberta.ca/WEBCT/science/index.html#MATH
Assignments: There will be 10 assignments due Wednesdays starting
September 28 (except Wednesday Oct 27). Assignment questions will be
placed on the class website. Students are responsible for accessing the
questions, and completing the assignments on time without further notice from
the instructor.
All assignments are to be placed in the designated assignment box on the 3 rd
floor of CAB by 4pm on the due date. The problems should be neatly printed or
typed. A top sheet with the student’s name only should accompany the
assignment. Additional problems and solutions will be placed on the course
website. Students are encouraged to work these problems for additional
practice.
Syllabus: The course will cover the first seven chapters (some sections to be
excluded) of The Theory of Interest. The object is for the student to develop a
practical knowledge of interest, learn a variety of annuity functions and learn to
apply the appropriate function to practical situations. Additionally, some analysis
of yield rates and bond pricing will be taught.
Calculators: In order to be useful, your calculator should have seven place
accuracy and a yx or xy button. Financial calculators such as Texas Instruments
BA II Plus, or the BA 35 Solar are helpful but not necessary. Use of calculators
will be allowed during the midterm and final exams. Use of programmable
calculators will be allowed during the exams, but students MUST reset the
calculator in view of the professor prior to the exam.
Code of Student Behaviour: The University of Alberta is committed to the
highest standards of academic integrity and honesty. Students are expected to
be familiar with these standards regarding academic honesty and to uphold the
policies of the University. Students are urged to familiarize themselves with the
provisions of the Code of Student Behaviour
(www.ualberta.ca/secretariat/appeals.htm) and avoid any behaviour which could
result in suspicions of cheating, plagiarism, misrepresentation of facts and/or
participation in an offence.
Students: Students are expected to bring textbook and calculator to each class.
They should be prepared to review their notes each day after class in
preparation for the next class. Due to the progressive nature of the course (i.e.
new concepts use and build on prior material taught), it is imperative that
students keep current with the course material.