Financial Maths with Sean Murphy
Sept 5/12/19/26 (7pm - 8pm)
Note: Typed notes and instructional videos with worked solutions to exam questions will be provided as part of the course material.
Session 1
· Present Value and Future Value
· The Compound Interest Formula
· Using Logs to Solve for t in Compound Interest Formula
· Terminology – APR/EAR/AER/CAR/Annuities/Amortisation/Mortgages/Pensions/Bonds
· Link between Compound Interest Formula and Inverse Functions
Session 2
· Savings and Geometric Series
· Converting Interest Rate from Annual to Monthly/Weekly Rate
· Exam Questions on Savings
Session 3
· Loans and Geometric Series
· Amortisation Formula
· Exam Questions on Loans and Amortisation Formula
Session 4
· Pensions/Bonds
· Depreciation
· Exam Questions on Pensions
Learning Outcomes
· Be able to manipulate the compound interest formula
· Be able to convert from annual interest rate to monthly/weekly rate
· Be able to work out questions involving savings/annuities
· Be able to work out questions involving loans/amortisation
· Be able to prove the amortisation formula
· Be able to work out questions involving pension plans / bonds / depreciation
· Be able to distinguish between the different types of exam question
· Be able to use new techniques and resources for teaching financial maths at leaving cert honours level