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Culture Documents
II.
Course Description
This course is designed to equip business students with the mathematical
skills needed to solve business problems. Topics include simple and compound
interest, discounts, annuity, amortization, sinking fund, depreciation, and bonds.
After completing the course the students will demonstrate mastery of the
concepts and principles of mathematics of investment which help them
understand the mathematical aspect of business.
3 units
Pre-requisite:
2ColAlg
I.
A.
B.
C.
D.
E.
F.
II.
A.
B.
Course Outline
Prelim Period
Simple Interest and Discount
Interest
Simple Interest
Calculation of Time Between 2
Dates
Amount & Present Value at Simple
Interest
Amount & Present Value at Simple
Discount
Discounting Promissory Notes
Equivalent Rates
1. Simple
2. Discount
Compound Interest
Compound Interest
Accumulation & Discounting at
Compound Interest
C. Equivalent Rates
1. Nominal & Effective
2. Nominal & Another
Nominal
Midterm Period
C. Equations of Value
III.
Simple Annuities
A. Terms & Notations
B. Present Value, Amount & Periodic
Payment of Ordinary Annuity
C. Valuation of Contract on Ordinary
Annuity
D. Present Value, Amount & Periodic
Payment of Annuity Due
E. Present Value & Periodic
Payment of
Deferred Annuity
IV.
V.
VI.
VII.
Final Period
Amortization & Sinking Funds
A. Amortization of Debt
B. Outstanding Principal
C. Amortization Schedule
D. Sinking Funds
E. Comparison of Amortization &
Sinking Fund
Depreciation
A. Terms & Notations
B. Straight Line Method
C. Sum of the Years Digit Method
Bonds and Bonds Valuation
A. Terms
B. Purchase Price
C. Valuation
Course Requirements:
Class Standing: Quizzes, Seat works, Assignments, and Problem Sets
Major Exams: Prelim, Midterm, Finals
CSP + CSM
2
P+M
Major Exam=
2
Class Standing=
Table of Equivalents
Average
Grade
(Percentage
Grade)
1.0
97-100
1.25
94-96
1.50
91-93
1.75
88-90
2.0
85-87
2.25
82-84
2.5
79-81
2.75
76-78
3.0
75
5.0
Below 75
6.0
F.A.
8.0
U.W
Note:
VIII. REFERENCE
TEXTBOOK
Capitulo, F.M. Mathematics of Investment. A Simplifeid Appoach. National
Bookstore. 3rd Edition 2005
BOOKS