Applied Mathematics

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Objectives

The aim of this course is to provide an introduction to the calculus involved in time value of money applications. At the end of the course students should be able to: understand the time value of money concept; understand compound and discount operations; apply compound and discount operations to financing and capital budgeting decisions.

Program

The topics covered in the course include: time value of money; future values and compounding; present values and discounting; annuities and perpetuities; financing instruments; and introduction to the capital budgeting decision.

Teaching Methodologies

The teaching methodology relies on 50% of theoretical lectures and 50% of tutorials. During the theoretical lectures the topics are presented by the professor and discussed with the students individually or in group. In the tutorials the students discuss several exercises pre-assigned by the professor.

Bibliography

MATIAS, Rogério, Cálculo Financeiro – Teoria e Prática, 3ª edição, Escolar Editora, 2009.
MATIAS, Rogério, Cálculo Financeiro – Casos Reais Resolvidos e Explicados, Escolar Editora, 2008.

Code

0103065

ECTS Credits

6

Classes

  • Teóricas - 30 hours
  • Teórico-Práticas - 30 hours

Evaluation Methodology

  • 1st Test: 42%
  • 2nd Test: 42%
  • Group work: 15%