THIS IS A ROUGH DRAFT!!!!!!

Math 3106, Mathematical Theory of Interest, Spring 2006, CRN:  21103

Instructor:  Dr. Lisa Peterson

•   Office:  220 Faculty Office Building

•   Phone:  706-568-2177

•   Email:  peterson_lisa@colstate.edu

•   Webpage: math.colstate.edu/lpeterson

•   Office Hours: MWF 12 -1 pm and by appointment  

Course Information:

• Meeting times/place:  TR 1:30 - 2:45; Arnold 105

• Text:  Theory of Interest, Kellison

• Syllabus:  Selected Sections from Chapters 1-9.

• Calculator:  TI - BA II  plus recommended

• Attendance:  Roll will be taken at each class meeting.  No make-up exams will be given.  If you have an acceptable excuse, your final exam grade may replace your missed exam grade.

Course Goals:

Upon completing this course the student should be able to

•            Define key terms from financial mathematics.

•       Calculate the equivalent annual effective rate of interest, given a nominal annual rate and a frequency of interest conversion, discrete or continuous.

•       Calculate the appropriate equivalent single value (present value, net present value, future value or combination), given a set of cash flows, an appropriate term structure of interest rates and an appropriate set of inflation rates.

•       Calculate the yield rate, given a set of investment cash flows.

•       Calculate the principal and interest portions of a loan payment, given the loan amount, the set of loan payments (level or varying), and set of interest rates (level or varying).

•       Calculate the loan amount, given a set of loan payments (level or varying) and set of interest rates (level or varying).

•       Calculate appropriate values for a financial transaction, given a cash-flow model that reflects the timing of payments of each of the associated cash flows.

•       Calculate appropriate investment project appraisal value using a discounted cash flow model.

Grading:

• Homework will be assigned daily.  You will be expected to present solutions to homework problems.  This will count as your "pop quiz" grade. We will have five in-class exams this semester and a comprehensive final exam.

• Tentative exam schedule:   Exam 1 - January 26,  Exam 2 - February 16,  Exam 3 - March 16, Exam 4 - April 6,    Exam 5 - April 27, Final Exam – see http://aa.colstate.edu/exams.htm

• Your final grade is determined by the following formula:  60% -average of five in-class exams, 5%- average of pop quizzes,    35%- final exam

• Your letter grade is based on a ten point scale.

Students with disabilities:   If you have a documented disability as described by the Rehabilitation Act of 1973(P.I., 933-112 Section 504) and Americans with Disabilities Act (ADA) and would like to request academic and/or physical accommodations, please contact Joy Norman at the Office of Disability Services in the Center for Academic Support and Student Retention, Tucker Hall (phone 706-568-2330) as soon as possible.  Course requirements will not be waived but reasonable accommodations may be provided as appropriate