Syllabus for Math 400 (Theory of
Interest)
Fall 2008 Semester at
Course Content
The
theory of interest in both finite and continuous time is explored together with
some applications to economics and finance; specifically, these concepts are
applied in the use of the various annuity functions and in the calculation of
present and accumulated value for various streams of cash flows as basis for
future use in reserving, valuation, pricing, duration, asset/liability
management, investment income, capital budgeting, and contingencies. Prerequisite:
C or better in Math129.
Who Should be Taking This Course
This
course is designed to cover topics on one of the exams of the Society of
Actuaries. This course can be used as
one of the requirements for the actuarial mathematics major and also as an
elective requirement for the mathematics major.
The prerequisite for this course is a passing grade in Math 129
(Calculus II). Students who do not
satisfy the course prerequisite will have their names removed from the roster.
|
|
Instructor(s)
|
Name |
Office Location |
Office Hours |
Office
Phone |
|
Dr. Gene Sprechini |
Academic
Center D311 |
Mon 9:30-10:30am Tue 10:00-10:45am Wed 9:30-10:30am Fri 9:30-10:30am |
(570) 321-4288 |
Tutoring
General
Tutoring is available for
students who want to check homework answers for errors, get help doing
homework, and ask questions about class work.
While tutors may need to give some detailed explanations to help
students with questions, it is not the tutors’ job to teach material from
scratch. (Students who miss class
should get a copy of class notes from the instructor, from a tutor, or from a
classmate. It is then the student’s
responsibility to review the material, update notes, and direct any questions
to a tutor, the instructor, or a classmate.)
Grading
|
Item |
Point
Values and Policies |
|
Homework |
Points
from homework assignments leading up to each exam are added, up to a maximum
total of 50. Completing all homework
is strongly encouraged, even though no more than 50 points can be earned
leading up to each exam. No points are ever given for late homework for any reason. Students who miss submitting an assignment
on time can still earn the maximum 50 points leading up to the exam, if no
more than a few homework exercises are missed; homework exercises not submitted
should be completed for practice and answered checked with a tutor or the
instructor. Due dates are available from the course
schedule. A
student who misses submitting more than 8 homework assignments automatically fails
the course. |
|
Semester Exams |
Up
to 150 points can be earned on each semester exam given in class. For each missed exam, a grade of zero is
recorded, unless (1) the instructor is presented with documented evidence of
a medical reason for not completing the exam at the scheduled time, and (2)
arrangements to make up the exam are made within 24 hours of the originally
scheduled exam time. Exam dates are
available from the course
schedule. |
|
Final Exam |
The
final exam is worth 400 points, with 50 points coming from the homework
leading up to the final exam and 350 points coming from the final exam
administered during final exam week. |
|
Attendance |
The
final course grade percentage is reduced by 4% for each unexcused absence
after the third unexcused absence; an absence is considered to be excused
when the instructor accepts an email from the student explaining the reason
for the absence. It is the student’s
responsibility to find out what was missed in class and keep up with the
coursework. Students can get a copy of
class notes from the instructor, from a tutor, or from a classmate. A
student with more than 10 unexcused absences automatically fails the course. |
|
There
is a total of 1000 points that can be earned.
The final course grade percentage is the percentage of points earned
out of the total number of points that can be earned. The final course letter grade is determined
from the following: A
= above 93.33% A– =
90% to 93.33% B+
= 86.67% to 90% B =
83.33% to 86.67% B– = 80%
to 83.33% C+
= 76.67% to 80% C =
73.33% to 76.67% C– = 70% to
73.33% D+
= 66.67% to 70% D =
63.33% to 66.67% D– = 60% to
63.33% F
= below 60% |
|
Required Materials
Each
student must have
·
a copy of the
textbook: The Theory of Interest, 3rd
edition, by Stephen G. Kellison (ISBN
978-0-07-338244-9)
·
a three-ring
binder containing copy of this syllabus, the course schedule, class notes,
completed assignments, etc. (Note: Since students will need to use this
binder every day in class and will be allowed to use this binder for exams,
the binders should be kept up-to-date and complete.)
·
a TI-84
calculator or a financial calculator is highly recommended (but other
calculators may be satisfactory)
Course Links
Some Well-Known
Sums and Series
Interest
Solver Excel Spreadsheet
Tips for Success in This Course
(1)
Keep up with the homework - understanding every homework assignment as
completely as you can is the key to grasping the course material. Even though there will be some homework
assignments that you may not be required to submit, do them anyway, since they
will help you master the material. Check
all your homework answers with a tutor before submitting an assignment.
(2)
As part of your preparation for exams, do all suggested “Exercises for
Practice” listed on the course schedule; these were not assigned for homework
submission and have the answers in the back of the textbook - start working on
these about a week before the exam date; don't wait for the night before the
exam.
(3)
Get your questions answered quickly by the tutor, the course instructor, or a
classmate.
(4)
Keep your binder up-to-date and well-organized, since you are allowed to use
the binder for exams.
General Standards and Policies
All work submitted must be of
professional quality. All paper must be
neat, without ragged edges, rips, tears, smudges, stains, etc. All answers must be clear, complete, and
concise; handwriting must be legible. If
the instructor can't read it, it's wrong.
Assignments may be down-graded if these standards are not met.
It can be very helpful for some students
to work together on daily assignments and to study together; this is encouraged
when it does not result in one student simply copying another's work with no
understanding. Acts of academic
dishonesty will result in a grade of F for the course, and a letter to the Dean
describing the circumstances. If you are
having problems in the course, talk to the instructor; don't involve yourself
in academic dishonesty. With each assignment submitted, students are expected
to write a short note at the end of the assignment indicating from whom help
was received and to whom help was given (but this does not affect the grade for
the assignment). The following is from
the FACULTY HANDBOOK in the section titled Student
Course Load:
"It
is expected that students will spend, in preparation for courses, two hours of
study time outside the classroom for every hour of credit in the
classroom."
This
means that you should be prepared to spend, on average, eight hours per week
outside of class working on a four-credit course; however, this will vary from
student to student and from course to course.
Your time will be spent reading the text, reviewing class notes, and
completing homework exercises.
If you encounter a problem while working
on assignments, do not spend more than 20 or 30 minutes trying to solve the
problem; if you cannot solve a problem in 20 or 30 minutes, even with the help
of a tutor or classmate, work on something else and show the problem to the
instructor of the course as soon as possible.