Key words
Financial mathematics
Objectives
To teach the techniques of financial algebra and life insurance, likely to be encountered in future professional life. Upon completion of this course, the student must not only be able to successfully apply the formulae and techniques, but understand why a particular formula works as well. He or she must therefore be able to reconstruct the underlying theory.
Topics
Financial algebra: simple interest and discount, compound interest and discount, annuities and perpetuities, loan amortisation and sinking funds, bonds.
Insurance: death tables, pure endowment, life annuity, whole life insurance, term insurance, endowment insurance.
Prerequisites
The elements of functions of a single real variable (see course Wiskunde 1).
Final Objectives
Materials used
Syllabus Wiskundige theorie der financiële verrichtingen en levensverzekeringen (inclusief oefeningenpakket) - dr. Ph. Carette
Study costs
Study guidance
Teaching Methods
Theory: 13 plenary classes of 2h each, with an emphasis on the understanding of the underlying financial transactions and the set-up of the associated mathematical formulae.
Practice: 14 classes of 2h each, designed to help to master and apply the techniques introduced in the theory classes and to apply them in lots of practical situations.
Assessment
written examination
Lecturer(s)
Philippe CARETTE
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