PRESCRIBED TEXT FOR:
Institution: Kaplan Higher Education - 2014 2nd Semester
Course Code: FIN240
Subject: Interest Rate Markets
Mathematics of Finance is designed to provide readers with a generic approach to appreciate the importance of understanding financial mathematics with respect to a wide range of financial transactions.
Tannous, Brown, Kopp and Zima deliver an excellent tool to equip students with the knowledge needed to operate in a world of growing financial complexity. Real-World applications, such as home mortgages and personal loans, engage students by showing the relevance along with the tools needed to apply what they learn to other situations.
Mathematics of Finance provides students with an understanding of the calculations that underlie most financial transactions. Case studies, exercises and numerous worked examples support the theory throughout the text.
'Mathematics of Finance, by Tannous, Brown, Kopp and Zima, provides a splendid array of numerical examples with real life application that support financial understanding in a substantive manner. The Australian focus and use of excel for obtaining numerical solutions make the book extremely useful in building student interest, awareness and skill in the approach to financial transactions.' - Professor Ron Ratti, University of Western Sydney.
Chapter 5: Repayment of Debts Useful for all Finance students given the current economic outlook. Amortisation of a debt and sinking funds methods are covered and compared in individual sections.
Chapter 7: Business decisions, capital budgeting and depreciation Discussion of net present value and internal rate of return, which is relevant for all students in their future careers.
Additional appendices Detailed explanation of logarithms, progressions and linear interpolation. Microsoft Excel Spreadsheets and Financial Calculators are integrated into the text so students can understand how they can be used in problem solving.
Table of Contents
1 Simple Interest and Simple Discount
2 Compound Interest
3 Simple Annuities
4 General and Other Annuities
5 Repayment of Debts
7 Business Decisions, Capital Budgeting, and Depreciation
8 Contingent Payments
9 Life Annuities and Life Insurance
Answers to Problems
Summary of Notations