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Simple interest. Simple discount (real, at an interest rate). Simple interest rates' equivalence. Time in mathematics of finance.
Bank discount (interest in advance). Equivalence of interest rate and discount rate. Commercial bills - discounting, equivalence, portfolio. Treasury bills - government issue, discount rate, equivalent interest rate.
Compound interest. Periodical and continuous compounding, exponential compounding. Nominal, equivalent, effective rate. Varying interest rates, average rate. Inflation, deflation, real rate of interest.
Capital value in time, PV, FV. Equivalence of value.
Annuity, PV and FV of annuity. Annuity immediate or due. Deferred annuity, perpetuity, simple or general. Financial functions in EXCEL spreadsheet.
Continuation
Short-term and long-term debt (credit) models. Amortization schedule. Negative amortization. Annuity (equal) payments, payments of equal amortization. Annual Percentage Rate of charge of credit - Polish and European Union regulations.
Evaluation of the investment decision. Net present value (NPV), internal rate of return (IRR). Mathematical aspects of IRR existence and calculation. Calculations in Excel spreadsheet
Duration and immunization.
Principles of the insurance premium calculation. Mortality tables. Net single premium.
Single net premium in whole life insurance and term insurance ? pure endowment or endowment life insurance.
Life annuities - net single premium. Annual net premium in whole life insurance, term life insurance, pure endowment or endowment.
Examples of applications.
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