231TopicList - Overview for Actsc 231 Mathematics of...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Overview for Actsc 231: Mathematics of Finance Important Note: This overview note aims at assisting students in studying their exams, but does NOT reflect or imply any materials in the exam. Students are responsible for understanding ALL materials in the class notes, the tutorial, the MapleTA materials and the quizzes. Students are also encouraged to check UW-ACE regularly for announcements. Chapter 1: The growth of money - understanding the time value of money - accumulation function a ( t ) with general force of interest δ t (special cases include simple interest and compound interest) - effective rate of interest over a period [ t 1 , t 2 ] - (for compound interest) conversion among effective rates of interest/discount, nominal rates of interest/discount and force of interest - present value of cashflows using discount function v ( t ) = 1 /a ( t ) - calendar usage (exact method, 20/360 rule, bankers’ rule) - understanding inflation and the purchasing power of money Chapter 2: Equations of value and fund performance - equations of value: PV of income = PV of outgo (called yield equation when interest rate is unknown)
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern