﻿ Financial Calculus - ContabilidadeInstituto Politécnico de Tomar

# IPT

Ano Letivo: 2018/19

## Financial Calculus

Publication in the Diário da República: Despacho nº 13772/2014 - 12/11/2014

5 ECTS; 2º Ano, 1º Semestre, 60,0 TP , Cód. 905613.

Lecturer
- Luís António Antunes Francisco (1)
- Antonio Gabriel Simão de Castro (2)

(1) Docente Responsável
(2) Docente que lecciona

Prerequisites
There are no prerequisites but prior attendance of Mathematics modules would be a helpful foundation.

Objectives
- Calculate present and future values of one or more capitals, solving problems related to such operations;
- Equate and distinguish different types of annuities, solving problems;
- Solve problems attending to different payment modalities of a loan.

Program
1 ? Introduction
? Basic concepts.
? Interest rate and discount rate.
? Present value and future value.

2 - Capitalization processes
? Simple interest scheme.
? Banking discount and reform of trade bills.
? Compound interest scheme.
? Nominal and effective rates, proportional and equivalent rates.
? Current and real rates.
? Capitalization in the domain of continuous.

3 ? Annuities
? Concept and modalities.
? Annuities with constant terms.
? Entire and temporary annuities.
? Fractional and temporary annuities.
? Perpetual annuities.
? Annuities with terms in Arithmetic Progression.
? Annuities with terms in Geometric Progression.

4 - Loan amortizations
? Concept and modalities.
? Reimbursement in constant annuities.
? Reimbursement in constant periodic capital amortization.
? Other modalities and variants.
? Bond loans.

Evaluation Methodology
Midterm assessment:
Six short class-tests during term-time each worth 5/20, of which the best 4 count towards the final grade (40%).
End-of-semester test (60%)
Average mark < 10 => Exam or resit.

Bibliography
- Barroso, M. e Crespo, N. e Couto, E. (2009). Cálculo e Instrumentos Financeiros, da Prática para a Teoria. Lisboa, Portugal: Escolar Editora
- Matias, R. (2015). Cálculo Financeiro, Teoria e Prática. Lisboa, Portugal: Escolar Editora
- Quelhas, A. (2014). Manual de Matemática Financeira. Coimbra, Portugal: Livraria Almedina
- Rodrigues, A. e Nicolau, I. (2010). Elementos de Cálculo Financeiro. Lisboa, Portugal: Áreas Editora

Teaching Method
Traditional lecturing methods supported by audiovisual resources.
Resolution of practical exercises.
Six short class-tests during term-time.

Software used in class
Not applicable.