Information Package

Program of Banking and Finance

TBF355

MATHEMATICS OF FINANCE

Course Code
TBF355
Semester
-
Theory+Practice
3 + 0
ECTS
5
Course TypeElective Course
Course LevelBachelor's Degree
Year of Study-
Semester-
ECTS5
Name of Lecturer(s) -
Learning Outcomes

At the end of this course, the students;

  1. Perform percentage, cost, and profit calculations.
  2. Explain why money has a time value.
  3. Analyze the relationship between nominal interest, real interest, effective interest, risk, and inflation.
  4. Perform simple interest and simple discount calculations.
  5. Perform compound interest and compound discount calculations.
  6. Conduct calculations related to installment payments.
  7. Create debt repayment schedules.
  8. Calculate gross and net costs in credit transactions.
  9. Identify the characteristics of different types of financing and compare their advantages and disadvantages.
Mode of DeliveryFace to face
PrerequisitesNo
Recommended Optional Programme ComponentsNone
Course DescriptionThe objective of this course is to understand the financial applications of mathematics and gain knowledge about its real-life applications.
Course Contents
WEEK TOPICS
1st Week Percentage, cost and profit calculations, ratio and proportion
2nd Week Simple interest and simple discount
3rd Week Simple interest and simple discount
4th Week Compound interest and compound discount
5th Week Compound interest and compound discount
6th Week Future value in annuities
7th Week Present value in annuities
8th Week Midterm exam
9th Week Debt payments
10th Week Debt payments
11th Week Bond valuation
12th Week Bond valuation
13th Week Stock valuation
14th Week Stock valuation
Recommended or Required ReadingAydın, N. (2021). Finans matematiği (4th ed.). Ankara: Detay Yayıncılık.

Aksoy, E. E. (2017). Finans matematiği. Ankara: Gazi Kitabevi.
Planned Learning Activities and Teaching Methods
  • Lecture
  • Questions/Answers
  • Problem Solving
Assessment Methods and Criteria
Quantity Percentage (%)
Mid-term 1 40
Total(%) 40
Contribution of In-term Studies to Overall Grade(%) 40
Contribution of Final Examination to Overall Grade(%) 60
Total(%) 100
ECTS Allocated Based on Student Workload
Activities Quantity Duration (Hour) Total Workload (Hour)
Midterm exam 1 1 1
Preparation for Quiz
Individual or group work 14 3 42
Preparation for Final exam 1 40 40
Course hours 13 3 39
Preparation for Midterm exam 1 20 20
Laboratory (including preparation)
Final exam 1 1 1
Homework
Total Work Load143
Total Work Load / 30 (h)4.76
ECTS Credit of the Course5
Language of InstructionTurkish
Work Placement(s)No
LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
K1 X X X X
K2 X X X X X X
K3
K4 X
K5
K6 X
K7
K8 X
K9
K10