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Lecturer(s)
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Přílučíková Jana, Ing. Ph.D.
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Vu Hoang Duong, Ph.D.
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Course content
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01. Introduction to household finance and foundations of financial mathematics 02. The simple interest in applications 03. The compound interest in applications 04. Savings and regular investment 05. Pensions and rents 06. Loans and borrowings 07. Investment and investment decision-making 08. The bond market and fixed-income securities, yield curves, rating and duration 09. The stock market and equity securities 10. International currency market and foreign currency operations
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Learning activities and teaching methods
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Lecturing, Activating (Simulation, games, dramatization), Practice exercises, Individual work of students, Dealing with situational issues - learning in situations
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| prerequisite |
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| Knowledge |
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| No previous knowledge from other courses is needed for course enrollment. |
| No previous knowledge from other courses is needed for course enrollment. |
| The student is required to use own personal calculator in the class. |
| The student is required to use own personal calculator in the class. |
| learning outcomes |
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| explain the concept of the time value of money (TVM) |
| explain the concept of the time value of money (TVM) |
| demonstrate and comprehensively explain the usage of formulas in solving time value problems |
| demonstrate and comprehensively explain the usage of formulas in solving time value problems |
| explain and interpret the effective annual rate and the percentage rate of charge (APR) |
| explain and interpret the effective annual rate and the percentage rate of charge (APR) |
| explain a term investment, and classify investments into basic categories |
| explain a term investment, and classify investments into basic categories |
| characterize the risk-adjusted expected return of investment |
| characterize the risk-adjusted expected return of investment |
| characterize stock market, bond, and money market |
| characterize stock market, bond, and money market |
| Skills |
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| calculate and interpret of simple interest using various real cases |
| calculate and interpret of simple interest using various real cases |
| calculate and interpret the compound interest using various real cases |
| calculate and interpret the compound interest using various real cases |
| calculate and interpret the combined interest using various real cases |
| calculate and interpret the combined interest using various real cases |
| calculate and interpret the effective annual rate |
| calculate and interpret the effective annual rate |
| solve saving and regular investment problems by applying basic principles of financial mathematics of annuities using various real cases including regular savings on savings and term accounts, building savings, retirement insurance, pensions and rents, deferred pensions, and combined savings and pension-based real cases |
| solve saving and regular investment problems by applying basic principles of financial mathematics of annuities using various real cases including regular savings on savings and term accounts, building savings, retirement insurance, pensions and rents, deferred pensions, and combined savings and pension-based real cases |
| solve loans and mortgage amortization problems for different frequencies of installments and values of annuities |
| solve loans and mortgage amortization problems for different frequencies of installments and values of annuities |
| calculate and interpret the risk-adjusted expected return of investment |
| calculate and interpret the risk-adjusted expected return of investment |
| teaching methods |
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| Knowledge |
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| Activating (Simulation, games, dramatization) |
| Activating (Simulation, games, dramatization) |
| Individual work of students |
| Individual work of students |
| Dealing with situational issues - learning in situations |
| Practice exercises |
| Practice exercises |
| Dealing with situational issues - learning in situations |
| Lecturing |
| Lecturing |
| assessment methods |
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| Written examination |
| Grade (Using a grade system) |
| Written examination |
| Grade (Using a grade system) |
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Recommended literature
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Biehler, T. J. The mathematics of money: math for business and personal business decisions. Mc-Graw Hill, 2008.
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Bierman, H., Smidt, S. Financial Management for Decsion Making. Washington, 2003. ISBN 1-58798-212-9.
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Defusco, R. A., McLeavey, D.W., Pinto, J.E. a D. E. Runkle. Quantitative investment analysis. Third edition. Hoboken: Wiley, 2015. ISBN 978-1-119-10422-3.
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Defusco, R. A., McLeavey, D.W., Pinto, J.E. a D. E. Runkle. Quantitative investment analysis workbook. Third edition.. Hoboken: Wiley, 2015. ISBN 978-1-119-10454-4.
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Marek Capinski Tomasz Zastawniak. Mathematics for Finance: An Introduction to Financial Engineering. London: Springer, 2003. ISBN 1852333308.
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Phillips, P.J. and Viney, C. Financial Institutions, Instruments and Markets. McGraw-Hill Australia, 2012. ISBN 9780071012416.
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Rosser, M. Basic Mathematics fo Economists. London, 2003. ISBN 0-203-42439-5.
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Zima, Petr. Schaum's outline of mathematics of finance. 2nd ed. New York : McGraw-Hill, 2011. ISBN 978-0-07-175605-1.
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