Financial Mathematics

Classes are based on a theoretical-practical approach, and the exposure of contents is accompanied by a wide range of problems, in addition to the presentation and discussion of real cases, if possible or relevant.

At the end of the course, the student must be able to:
Apply the methods of calculation related to financial transactions and lending;
Identify the various possibilities of financing available to private and public entities;
Identify the determinants of the financial costs inherent to the various forms of financing;
Produce and interpret maps and other kinds of documents related with the sources of financing.

PART I – BASIC CONCEPTS
I –Capitalization and discount operations
Simple interest and compound interest
Calculation of interest in banking practice
Forms discount
II – Interest rates
Proportional and equivalent rates
Nominal and effective rates
Average rate of application
Annual effective rate of charge
III – Equivalent capitals
Equation of equivalence
Assessment rate
IV –Annuities
Kinds of annuities
Constant terms amortization annuities
Constant terms accumulation annuities
Anticipated annuities
Deferred annuities
Fractional annuities
Perpetuities
PART 2– SOURCES OF FUNDING
V – Sources of short-term financing
Bill notes discount
Promissory notes discount
Effective cost of discount
Reform operations
VI – Sources long-term financing
Classic loans
Repayment of loans
Amortization of loans with periodical repayments
Other sources of long-termfunding

NAO