Ateneo - UPO

The course focuses on elements of basic financial mathematics. In particular, it focuses on capitalization and discount operations, determining loan amortization schedules, and making financial choices using the NPV criterion.

Useful textbooks will be indicated on the DIR page of the course and communicated at the beginning of the module. Additional materials will be made available on the course’s DiR page.

The course is aimed at providing the student with a satisfactory knowledge and understanding of the key financial operations and of the mathematical tools related to them as well as of their range of applicability. As such, the execution of methods and algorithms is to be understood as a means to achieve the objectives of the course and not as its last goal.

Basic algebra.

Lectures.

Attendance is not mandatory but is strongly recommended. Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/servicesstudents-physical-or-learning-disabilities. Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

Prova scritta e orale.

Financial operations: amounts, maturities, principal, amount, interest, interest rate, discount, discount rate, nominal value, present value, capitalisation and discounting (and factors). Financial regimes: simple interest, simple discount, compound interest, compound discount, equivalent rates, commercial discount. Bonds: zero coupon bonds and coupon bonds. Classification and evaluation of anticipated and deferred financial annuities. Perpetual annuities (hints). Forms of repayment of a loan: general. Amortization of a loan: elementary setup and financial setup.

By the end of the course, students should be able to autonomously decide when to apply the quantitative tools they studied; furthermore, they should know how to interpret and communicate with correctness and critical sense the results obtained.