Commercial Calculus

The lessons are theoretical and practical in nature. After explaining the concepts, the students are asked to apply them to a wide range of exercises. This is a teaching methodology that is widely applied in the field of business science.

In addition, the topics taught are illustrated using concrete situations from the life of organisations, which is also a common teaching practice in the field of business sciences.

The course aims to provide students with:

1) knowledge of the financial value of time;

2) understanding of the calculation methods inherent in active and passive financial operations;

3) learning about some of the financing methods available to organisations;

4) identifying the determining factors of the financial cost inherent in the various types of financing;

5) producing and interpreting maps and other documents relating to the various types of financing;

6) understanding of the concepts and calculation processes that are fundamental to the pursuit of knowledge in the financial area.

Classes are theoretical and practical in nature. After the essential theoretical concepts have been explained, the students are confronted with a wide range of practical exercises to be solved in class, and complementary exercises are proposed in order to consolidate these concepts. This type of methodology makes it possible to fulfil the previously stated objectives.

I. Capitalization and discount

1. Return, financial transactions, and interest rate

2. Capitalisation: simple interest, compound interest and continuous capitalisation

3. Discount operations: discount at simple interest and at compound interest

II. Interest rates

1. Main issues

2. Proportional and equivalent interest rates

3.Nominal and effective interest rates

4.Average rates

5.Gross and net interest rates

6.Annual percentual rate of charge

III. Sources of short-term finance

1.Discounting of securities: bills of exchange and promissory notes

2.Effective cost of banking discount

3.Roll-over

IV. Equivalence of capital

1.Equations of value

2.Evaluation rate

V. Annuities

1.Concept, characteristics and classification criteria

2.Two fundamental cases: discounted value and accumulated value of an annuity

3.Due, deferred and perpetual annuities

VI. Long-term sources of finance: classic loans

1. Amortization of loans with periodic repayments and periodic instalments

2.Amortization schedules

Students who are not covered by the worker-student statute may choose one of the following assessment methods, to be indicated during the diagnostic assessment phase at the beginning of the semester:

a) Mixed Assessment (Exam + Continuous Assessment): This method is based on the weighted average between theoretical-practical performance and continuous monitoring:

• Exam (50% of total score): Comprehensive test on the syllabus content, mandatory assessment element.

• Continuous Assessment (50% of total score): Consisting of practical work, exercise lists, and tests carried out throughout the semester. In this component, there is no mandatory minimum grade.

 Final grade: Exam x 50% + Continuous Assessment x 50%

b) Assessment by Exam: Students may choose to take only the Exam during the normal exam period. In this case, the result achieved in the Exam will constitute 100% of their grade for the normal exam period, with a minimum grade of 9.5 required to pass.

Final grade: Exam x 100%

Failure to indicate the assessment method will imply acceptance of the exam assessment method.

During the exams, scientific and/or financial calculators may be used, but spreadsheets or artificial intelligence tools are not permitted. In other activities, the use of computer resources for research, data analysis, structuring, and development of the activity is encouraged, provided that they are used in accordance with ethical principles and that the contribution obtained and the tool used are referenced.

Calculation of the Grade in the Normal Period: For students who opt for the mixed composition, the final result will be the simple arithmetic mean between the exam grade and the score obtained in the continuous assessment, provided that the minimum exam grade is respected.

Resit Period: Students who do not obtain the minimum grade required for approval in the normal period (result of the mixed assessment or exam grade lower than 9.5) will have the right to take a substitute exam in the resit period. In this case, the result achieved in this resit exam will constitute 100% of their final grade.

Working Student Status: Students who have working student status must formally indicate their situation at the beginning of the academic period. This advance declaration is essential for adjusting expectations and for the possible choice of assessment methods that best suit their specific condition.

Additional Comments: In line with the impact of new technologies, the use of digital tools, namely financial calculators and artificial intelligence, may be encouraged in specific tasks (such as exercise lists or projects), provided they are duly authorized and cited, in accordance with good academic practices, highlighting the need to always verify the sources and results generated by artificial intelligence tools, using them as learning aids, and never as a substitute for the student.

Self-assessment and peer feedback will also be encouraged in continuous assessment activities to reinforce student autonomy.