HOLY CROSS OF DAVAO COLLEGE
Sta. Ana Avenue, Davao City
Bachelor of Arts (AB)
Area: Mathematics
COURSE OUTLINE
Mathematics of Investment
I. Course Number: Math 7
Credit: 3 units
II. Course Title: Mathematics of Investment
Pre-Requisite: Math 5
III. Course Description:
This course is designed to provide a basic course in theory and applications
on all kinds of business transactions involving: interest rates, annuities, bonds,
depreciation, general annuity perpetuity, and amortization and sinking fund so that
the students will be equipped with principles on investment and mathematical skills
to be able to judge whether a potential investment will be profitable or not.
IV. Course Objectives:
At end of the course, the student should be able to:
Cognitive (Knowledge):1. list, discuss and differentiate all kinds of financial
transactions on different interest rates, annuities,
bonds, deprecation, general annuity, and perpetuity.
2. translate and apply theories and principles in
mathematics of investment in local international
setting
3. criticize, synthesize and formulate financial
transactions, which are beneficial to potential
investors.
Affective (Attitude):
1. develop a work attitude of doing things correctly,
honestly and independently
2. generate more interest in studying mathematics of
investment as a primary tool of the Business
profession
3. gain trust and confidence in expressing one’s ideas
and view without fear of rejection.
Psychomotor (Skills):1. demonstrate mathematical skills in solving any
problems on simple and compound interest and
discounts, different kinds of annuities, bonds,
depreciation, general annuity and perpetuity.
V. Course Outline
No. of Hours
A. Simple Interest and Simple Discount
1. Differentiate Simple Interest and Simple Discount
2. Differentiate between ordinary interest and
exact interest
3. Problems on Simple
3
B. Calculations of time between two days:
1. Actual method
2. Approximate method
2
C.
D.
E.
F.
G.
Amount and Present value at Simple Interest
Simple Discount
Promissory Note
Meaning of Compound Interest and Simple Annuities
Finding Compound Amount, Compound Interest,
Present Value and Compound Discount
H. Calculating:
1. Time and Interest Rate
2. Nominal and Effective Rates
3. Equivalent Rates
I. Equation of Value
J. Introduction in the General Concepts in kinds of Annuity.
K. Finding amount of present value of an ordinary annuity
L. Meaning of terms and symbols on Simple Annuities
M. Computation of Periodic Payments
N. Finding the Amount and Present Value of an annuity
O. Finding the Interest Rate and Term of an Ordinary Annuity
P. Amortization and sinking Fund:
1. Definition
2. Preparation of Amortization Table
3. Preparation of Sinking Fund Table
4. Problem Solving
Q. Bonds and Bond Valuation:
1. Definition
2. General Concepts
3. How to price bonds for sale
4. Determining flat price accrued interest and quoted price
2
1
1
2
3
R. Meaning and methods of depreciation
S. Perpetuity
T. General Annuities Amount and Present Value
2
2
3
4
3
1
3
1
2
2
3
6
6
___
Total
54
VI.
References
A. Books
Aduana, N.L. (2012) Mathematics of Investment: Procedural
Approach, C.& E Publishing Inc.
Aice,Ma.T.(2010) Mathematics of Investments. Rex Bookstore,
Nicanor Reyes, Manila. Phils.
Sirug, W.S (2010) Mathematics of Investment, Revised Edition,
Mindshapers Co. Inc. Intramuros, Manila.Phils
Bautista,L.SM.(2010) Mathematis of Investment, 2nd Edition, C &E
Publishing Inc.
Young, Felina.C.(2009) Mathematics of Investments Made Smple 1
Rex Bookstore.Inc.
Shestopaloff, Y.K (2009). Science of Inexact Mathematics of
Investment Performance Measurement AKVY Press, Toronto,
Canada
B. Web Resources
William L. Hart. Mathematics of Investment. Retrieved September
19, 2014 from
https://archive.org/stream/mathematicsofinv004275mbp/mathe
maticsofinv004275mbp_djvu.txt
Edward Lewis Dodd,. Fundamentals in the Mathematics of
Investment. University of Texas. Retrieved September 19, 2014
from: http://www.jstor.org/stable/2974341