3 Credit Course
Offered in Lab or Lecture or TV Format
Prerequisite required  (MATH 0600 or 1600 or Appropriate Placement-Test score)

SYLLABUS

I. SIMPLE INTEREST

A. Formula for simple interest: I = Prt
        1. Solve for I
        2. Solve for P, r, or t
B. Formula for maturity value: S = P + I
C. Two types of interest
        1. Ordinary interest
        2. Exact interest
D. Two types of time
        1. Ordinary
        2. Exact
E. Formula for present value:
F. Equations of value
*G. Investment analysis
        1. Discount all cash flows at a given rate
        2. Find internal rate of return
H. Partial payments
        1. Merchants' Rule
        2. U.S. Rule

II. BANK DISCOUNT

A. Formula for bank discount: D = Sdt
        1. Solve for D
        2. Solve for S, d or t
B. Formula for proceeds: P = S - D
C. Formula for maturity value:
D. Conversion of discount rate to interest rate and vice versa:
                         ,
E. Value of a promissory note at any point in time.

III. COMPOUND INTEREST

A. Formula for compound interest: S = P(l + i)ⁿ
        1. Solve for S
        2. Solve for i or n (linear interpolation)
B. Effective interest rate
C. Interest for part of a period
D. Present value at compound interest: P = S(l + i)^-n
E. Extension of tables
F. Equations of value

IV. ANNUITIES

A.    Ordinary
        1.    Amount of ordinary annuity: S_n = Rs_{n| i}
               a. Solve for S_n
               b. Solve for R, n, or i
        2. Present value: A_n = Ra_n|i
               a. Solve for A_n
               b. Solve for R, n, or i
        3. Extension of tables
        4. Amortization and sinking funds
*B. Annuity due:
*C. Deferred annuity: A_n=Ra_n|i(1+i)^-m

*V. PERPETUITIES

*Optional

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