Math 303 - Theory of Interest and Life Insurance

• Prerequisites: Math 234 or con reg, or consent of instructor.
• Frequency: Irregular
• Student Body: For students in the actuarial sciences or with an interest in it.
• Credits: 3. (N-I)
• Recent Texts: The Theory of Interest, by Kellison.
• Past Instructors:
• Background and Goals: Although cross listed with mathematics, this course is usually taught by faculty in the business school. Please contact the business school for more information.
• Alternatives: n/a
• Subsequent Courses: n/a

Content coverage:

• Series and sums, differentiation
• The measurement of interest: simple and compound interest, present value and discounting, forces of interest and discounting
• Solution of problems in interest
• Annuities: annuities due and immediate
• Yield rates: cash flow analysis, reinvestment, methods of calculating yield rates
• Amortization schedules and sinking funds
• Bonds and other securities
• Practical applications