An introduction to actuarial cash flow models. Simple,
compound, and effective interest functions are analyzed and
used in the calculation of present value and future values of
various types of annuities as well as more complex cash flow
streams.
Athena Title
Actuarial Financial Math
Prerequisite
MATH 2260 or MATH 2260E or MATH 2260H or permission of department
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Student learning Outcomes
By the end of this course. students will be able to perform time value of money calculations on complex cash flows, including loans, bonds and annuities.
By the end of this course, students will be able to describe and understand the following concepts: effective interest rates, nominal interest rates, simple interest and compound interest.
By the end of the courses, students will understand the relationship between interest rates and the maturity of cash flows, including the use of spot and forward interest rates.
By the end of this course, students will be able to understand and apply cash flow matching concepts and calculations.
Topical Outline
The measurement of interest
Solution of problems in interest
Basic annuities
More general annuities
Amortization schedules and sinking funds
Generalized cash flow models
Yield rates
More advanced financial analysis
The term structure of interest rates
Asset and liability cash flow matching
Overview of financial instruments and their cash flows
Institutional Competencies Learning Outcomes
Analytical Thinking
The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.
