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Faculty of Science Mathematics & Statistics
Faculty of Science

Mathematics & Statistics

MATH 2FM3, Fall 2018

INTRODUCTION TO MATHEMATICAL FINANCE

Throughout the course of a lifetime, we all have to make an overwhelming number of financial decisions regarding  loans, investments, savings, and pension. If you would like to be better prepared for the challenges of making these decisions, then the Math 2FM3 course is the right place for you to start. We will introduce the notions of simple and compound interest; the accumulation function; present and future values; discount, nominal, and effective rates; inflation; real rate of interest; force of interest; and equation of value. We will learn about annuities, due and immediate. We will study about sinking funds, bonds, loans, securities valuation, and the term structure of interest rates.  For aspiring actuaries, this course offers an excellent  opportunity to prepare for the Society of Actuaries FM exam.

INSTRUCTOR:  D. Lozinski

Course Website

Calendar Description
3 Units
Nominal and effective rates of interest and discount, forces of interest and discount, compound interest, annuities certain; amortization, sinking funds, bonds, security evaluation, determination of yields.
Three lectures, one tutorial; one term
Prerequisite(s): One of MATH 1A03, 1LS3, 1M03, 1N03, 1X03, 1Z04, 1ZA3, ARTSSCI 1D06 A/B, ISCI 1A24 A/B
Antirequisite(s): MATH 2K03

PLEASE REFER TO MOSAIC FOR THE MOST UP-TO-DATE INFORMATION ON TIMES AND ROOMS

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McMaster University - Faculty of Science

Mailing Address

Department of Mathematics & Statistics
McMaster University

Hamilton Hall, Room 218
1280 Main Street West
Hamilton, Ontario, Canada
L8S 4K1

Contact Information

Office Hours:
8:30 a.m. - 12:00 p.m.
1:00 p.m. - 4:30 p.m.
Telephone Inquiries:
+1 (905) 525-9140 ext.27034
Undergrad Email Inquiries:
undergrad@math.mcmaster.ca

McMaster University - Faculty of Science

Mailing Address

Department of Mathematics & Statistics
McMaster University

Hamilton Hall, Room 218
1280 Main Street West
Hamilton, Ontario, Canada
L8S 4K1

Contact Information

Office Hours:
8:30 a.m. - 12:00 p.m.
1:00 p.m. - 4:30 p.m.
Telephone Inquiries:
+1 (905) 525-9140 ext.27034
Undergrad Email Inquiries:
undergrad@math.mcmaster.ca