This course is an
introduction to interest rates (simple, compound), annuities
(ordinary, due, deferred), amortization (mortgages, other debts),
sinking funds, bonds (face value, bond rate, price, yield rate),
and depreciation (straight line, constant percentage).
A different title for this course might be
"The Mathematics of Money". As
money moves through time, the force of interest must be taken into
account. Doing so requires mathematical calculations, and this course
introduces some of those calculations. While the background required
is only (the equivalent of)
Ontario Grade 12 mathematics, the course will be a universitylevel
mathematics course that requires problemsolving skills.
This course is new for 19992000. It will be offered in both the Fall
term
and the Winter term, one section per term. It should be particularly
attractive to students in the Business and Society Programmme, and
also to students in economics and businessrelated areas. The course
emphasizes problem solving rather than theory. Computers
(spreadsheets) will not be used; students will
need a handheld calculator which can
at least calculate exponents.
The text will be P. Zima and R.L. Brown, Mathematics of
Finance (4th Ed.), McGrawHill Ryerson Limited, 1993,
but only about half the text (and not exactly the first half) will be
covered. A Solutions Manual for the text will also be available for
purchase.
Tentatively, the final grade will be based on two onehour class tests
(25% each), and a final exam (50%).
This course contains approximately half the material that is covered
in MATH 2580 6.0 (but not exactly the first half of that
course). Students
who might major in Mathematics for Commerce should take MATH 2580 6.0
(where spreadsheets are covered) rather than MATH 1581 3.0. Either
MATH 1581 3.0 or MATH 2580 6.0 will serve to satisfy part of the Core
requirements of the Business and Society Programme.
Another new course, MATH 2581 3.0, entitled "Business Mathematics
II",
is scheduled to begin in 20002001. It will contain the other half of
MATH 2580 6.0, so that MATH 1581 3.0 plus MATH 2581 3.0 will be
equivalent
to MATH 2580 6.0. MATH 2580 6.0 might then be phased out.
Prerequisite:Ontario Grade 12 Mathematics or equivalent.
Exclusions:AS/AK/MATH 2580 6.0.
Coordinator: P. Olin
