Basics of business mathematics (5cr)

Objective

The student is able to calculate by index numbers the changes of prices and general economic activity. The student can construct the real changes of wages and prices. He or she can determine interest, principal, interest rate and interest time in various cases. The student is able to calculate interest calculations in different situations. The student can determine the future value and the present value of periodic payments. He or she is able to calculate the equal payment of an annuity loan. The student can draw up an instalment payment scheme for different loans. The present value method and the annuity principle can be used in investments by the student.

Content

Taxes, index numbers, foreign currencies, simple interest, compound interest, periodic payments, loans and investments

Qualifications

No previous studies are required.

Assessment criteria, satisfactory (1)

Satisfactory (1 and 2)
The student is able to calculate satisfactorily and knows the basics and basic concepts of financial mathematics.

Good (3 and 4)
The student is able to calculate well and knows well the basics and basic concepts of financial mathematics. He/she is able to supply the methdods of financial mathematics in different situations.

Excellent (5)
The student is able to calculate and knows the basics and basic concepts of financial mathematics very well. He/she is able to apply the methdods of financial mathematics in different situations very well.

Materials

- Textbook: Liike-elämän Matematiikka
Availability: http://tiny.cc/rcxxkx

- Lecture materials also in Moodle

- Other material announced by the lecturer

Teaching methods

- lectures and the practicing of calculate
- working alone