Base Knowledge
Basic knowledge in mathematics.
Teaching Methodologies
The theoretical contents of the curricular unit will be presented making use of educational resources as Exposition, Explanation, Dialogue and Questioning and illustrated whenever possible with practical cases. Students are encouraged to apply the competences acquired through practical activities, including the analysis of practical cases and exercises.
Learning Results
The aim of this curricular unit is to enable students with the fundamental concepts inherent to financial mathematics and to get students to know some financial instruments. It is also intended that students become able to use the acquired knowledge in solving practical problems. Each chapter will start with the presentation of clear definitions and proper principles. It will be given emphasis to the formulation of problems and results analysis. Given the practical nature of the matters to traverse, various exercises will be presented accordingly.
Program
Chapter I – Introduction
1. Basic Concepts 1.1. Capital, time and interest 1.2. Interest rates 1.3. Discounting and discount rates
2. Capitalization and discount 2.1. Capitalization schemes 2.1.1. Simple interest 2.1.2 Compound interest 2.2 Discounting schemes
3. Interest rates 3.1. Proportional and equivalent rates 3.2. Nominal and effective rates 3.3. Gross and net rates 3.4. Nominal and actual rates
4. Values equivalence. Equation of equivalence.
Chapter II – Annuities and Perpetuities
1. Annuities definition and classification 1.2. Annuities with constant terms 1.3. Annuities with variable terms 1.4. Fractional annuities with constant terms 1.5. Fractional annuities with variable terms
Chapter III – Financing sources
1. Banking operations 1.1. Bills discounting 1.2. Letters of credit operations
2. Loan Repayments 2.1. Definition and characteristics 2.2. Loan Repayments Methods 2.3 – Loan tables and investment amortization.
Curricular Unit Teachers
Internship(s)
NAO
Bibliography
– Barroso, M.N., Couto, E., & Crespo, N. (2009). Cálculo e instrumentos financeiros: da prática para a teoria (2ª Ed.). Escolar Editora.
– Canadas, N. (1998). A matemática do financiamento e das aplicações de capital. Plátano Editora.
– Laureano, R., Santos, L. (2011). Fundamentos do Cálculo Financeiro. Edições Sílabo.
– Lisboa, J.V., Augusto, M.G. (2008). Cálculo Financeiro. Vida Económica.
– Mateus, J. (1999). Cálculo Financeiro (5ª Ed). Edições Sílabo.
– Mateus, J. (2002). Exercícios Resolvidos de Cálculo Financeiro. Edições Sílabo.
– Matias, R. (2015). Cálculo Financeiro: teoria e prática (5ª Ed.). Escolar Editora.
– Matias, R., Silva, I. (2008). Cálculo Financeiro – Exercícios Resolvidos e Explicados. Escolar Editora.
– Quelhas, A.P., Correia, F. (2009). Manual de matemática financeira. Edições Almedina.
– Rodrigues, A., Nicolau, I. (2010). Elementos de Cálculo Financeiro (9ª Ed.). Áreas Editora.