NORTHWEST-SHOALS COMMUNITY COLLEGE

Northwest-Shoals Community College

GENERAL COURSE SYLLABUS

TITLE OF COURSE: MTH 246 - Mathematics of Finance

DIVISION: Mathematics, Science, and Technolog [A1] y Division

COURSE DESCRIPTION: This course explores mathematical applications relevant to business practices. Topics include simple and compound interest, credit, trade and bank discounts, annuities, amortization, depreciation, stocks and bonds, insurance, capitalization and perpetuities. This course does not apply toward the general core requirements for mathematics.

HOURS:

Credit: 3 Contact: 3

Lecture: 3 Clinical: 0

Lab: 0

PREREQUISITE(S): MTH 090 or MTH 098 or appropriate math placement score

CO-REQUISITE(S): None

REQUIRED TEXTBOOK(S): Business Mathematics for Colleges; 14th edition; Dietz and Southam, South-Western Publishing Company, 2006.

SUPPLIES: A scientific calculator may be useful for completing assignments.

GENERAL EDUCATION OBJECTIVE: All associate degree graduates should be able to use the mathematical concepts, notations, and manipulations needed in their field of study or occupation (3).

COURSE OBJECTIVES: Upon successful completion of Mathematics of Finance, the

student should be able to:

1. Calculate the base, rate, and percentage in simple percent problems and solve business application problems involving percentage.

2. Compute cash discounts on invoices, compute straight discounts, and compute series of discounts and equivalent single discounts.

3. Compute simple and compound interest.

4. Compute the proceeds and discounts on loans and notes, and compare cash discounts and loan interest in making sound business decisions.

5. Calculate finance charges, stated rate, and effective rate, determine monthly payments on installment loans, and determine interest and principal payments on amortized loans.

6. Determine short rate refunds on insurance and coinsurance losses.

7. Determine life insurance premiums, cash surrender and loan values, and settlement options from tables.

8. Compute the future value of an ordinary annuity from tables, compute the amounts of the annuity payments from the future value of the annuity, and calculate the present value of perpetuity.

[A2]

9. Compute depreciation using the straight-line, declining balance, and sum-of-the –years-digits methods.

10. Compute the costs and proceeds of stock buy and sell transactions, compute the costs and proceeds of round and odd lots, calculate the rates of yield and gains and losses on the purchase and sale of stocks, and identify the major classes of corporate stocks, compute the value of a stock for capitalization purposes.

11. Describe common types of corporate and government bonds, and bond market reports, and compute commissions for buying and selling bonds, average annual yield and rate of yield to maturity.

[A3] METHODS OF EVALUATION:

Course Grade Evaluation: (Minimum of 4 measurements)

A comprehensive final exam will be given and counted toward the student’s final average. Make-up examinations, as such, will not generally be given.

Evaluation of General Educational Objectives: Student success on the General Educational Objective (3) is measured by student performance on each of the course objectives, which require use of mathematical concepts, notations, and manipulations. Performance on each course objective will be evaluated using appropriate problems from the final exam. Results will be tallied for each course objective.

Use of Findings: Instructors will analyze data gathered from the assessment(s) for each course objective and changes will be made based on identified weaknesses. The math department will meet once every five years to discuss findings and implement strategies to improve department and student performance.

OUTLINE OF COURSE TOPICS:[A4]

I. Percentage Applications and Math Review

A. Percents in Business

B. Discounts

C. Basic Math Review

II. Interest Applications

A. Simple Interest

B. Notes and Interest Variables

C. Borrowing by Business

D. Charges for Credit

E. Compound Interest

III. Accounting Applications and Insurance

A. Payroll Records

B. Federal Income Tax

C. Auto and Property Insurance

D. Life and Health Insurance

IV. Business Applications

A. Inventory and Turnover

B. Depreciation

V. Corporate and Special Applications

A. Corporate Stocks

B. Corporate and Government Bonds

C. Annuities

D. Math in Employment Tests

E. Business Statistics

AMERICANS WITH DISABILITIES ACT POLICY: It is the policy of Northwest-Shoals Community College to comply with the Americans with Disabilities (ADA) Act. Any student covered under this act needing and desiring reasonable accommodations for this class should notify Linda Waide at 331-5321. See NWSCC catalog for additional details.

ATTENDANCE POLICY: Because class attendance is considered to be essential to the accomplishment of course objectives, excessive absences are discouraged. At no time should a student miss more than 20% of the class meetings for a course. These absences also include any absences accrued during late registration. Failure to adhere to the 20% policy may result in a failing grade based on academic performance. Students should discuss with the instructor what is considered “excessive” for a particular course. Any variation of this policy must be approved through the Chief Instructional Officer. A student who is absent due to required participation in a school activity must be allowed to make up work, according to guidelines issued by individual instructors.

WITHDRAWAL POLICY: A student who is unable to complete a course is expected to withdraw from that course by the end of 60% of class meetings. A student who withdraws by the date published in the schedule will receive a grade of “W” for the course. This withdrawal is done only by student request. The grade of “W” is allowed regardless of the student’s grades to the point of withdrawal.

After the designated date of class withdrawal, the approval of the Chief Instructional Officer is required prior to allowing a student to withdraw. The determination of “WP” (withdrawal passing) or “WF” (withdrawal failing) will be made by the instructor for the course and is based on the student’s grades to the point of withdrawal.