Introduction to Financial Mathematics I

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Description

Objective

Together with MATHS 1010 Applications of Quantitative Methods in Finance I, this course provides an introduction to the basic mathematical concepts and techniques used in finance and business and includes topics from calculus, linear algebra and probability, emphasising their inter-relationships and applications to the financial area; introduces students to the use of computers in mathematics; develops problem solving skills with a particular emphasis on financial and business applications.

Content

Algebra: Matrices and linear equations. Optimisation problems: solutions by graphical and algebraic methods. Functions and Annuities: linear, quadratic, exponential and logarithmic functions; simple and compound interest, annuities and amortization of loans. Continuous rates of change and the derivative.