FM 101

Financial Mathematics
COURSE OUTLINE

1. SEMESTER/YEAR Semester 1, 2020

2. MODE OF DELIVERY/LOCATION: Face to Face/Laucala and Blended/All Other Campuses

3. PRE-REQUISITES: Admission into Undergraduate programme

4. COURSE CO-ORDINATOR: Nikeel Kumar

5. TEACHING TEAM

Name: Nikeel Kumar (Coordinator/Lecturer) Name: Amalaini Lovo (Part Time Tutor)
Office: FBE-Greenhouse Office: -
Phone: +679 32 32687 Phone: -
Email: [email protected]; Email: [email protected]
[email protected] Consultation Time: -
Consultation Time: TBA

6. ADMIN OFFICE/EMERGENCY CONTACT

Name: Gloria Yam

Phone: (679) 323 2517
Email: [email protected]

7. COURSE DESCRIPTION

Financial Mathematics (FM) 101 is an introductory course in finance. This is a core course for
students doing majors in Accounting, Banking, and Finance. This course is intended to equip
students with some basic tools to in finance that will be useful and possibly enhanced in
higher level courses in Accounting, Banking and Finance program.

Skills acquired in this course are relevant and provides the building block to comprehend
financial models and applications at higher level courses. Individuals expecting to join private
or public sector organizations will appreciate the basic skills of financial mathematics
presented in this course.

Although there is no prerequisite for FM101, a good understanding of at least a high-school

level mathematics is required. FM101 a prerequisite unit for the second-year Accounting,
Banking and Finance courses as well.

FM101: Course Outline – Semester 1- 2020 Page 1

8. COURSE LEARNING OUTCOMES

On successful completion of this course, students should be able to:

1. Demonstrate understanding of basic mathematics (logarithms, power functions,
progressions, and linear interpolations (L1)
2. Explain the concept of time value of money (L2)
3. Differentiate between simple interest, compound interest and annuity (L3)
4. Identify and compute present and future values in the context of simple interest,
compound interest and different types of annuities. (L4)
5. Apply tools in finance for decision analysis related to applications on housing loans,
bond valuation, and business decisions (L5)

9. PROGRAMME LEARNING OUTCOMES

1. To understand financial concepts and their applications in practice (P1).

2. To apply tools and methods available in finance for decision analysis (P2)
3. To make financial decisions based on sound methods and approaches (P3).
4. Differentiate between relevant and irrelevant information in conducting financial
analysis. (P4)

10. USP GRADUATE OUTCOMES

The USP graduate outcomes are as follows:

1. Creativity: Graduates will generate new ideas and approaches to solve problems
2. Communication: Graduates will choose appropriate language and modes of
communication to share ideas and capture understanding
3. Critical thinking: Graduates will evaluate ideas and opinions before forming a
conclusion
4. Ethics: Graduates will apply ethical reasoning to their actions and decision-making
5. Pacific consciousness: Graduates will recognize the cultural heritage, and diversity of
Pacific societies
6. Professionalism: Graduates will apply professional principles, values and ethics to
their work
7. Teamwork: Graduates will collaborate with people of diverse perspectives to achieve
goals

11. COURSE CONTENT

Date Focus for Each Week

3-7 Feb
1 I. Linear Algebra
(Week 1)
10-14 Feb
2 II. Linear Programming
(Week 2)
17-21 Feb
3 III. Linear Interpolation & Basic Calculus
(Week 3)

FM101: Course Outline – Semester 1- 2020 Page 2

 24-28 Feb
4 IV. Simple Interest & Simple Discount (Partial Payments)
(Week 4)
2-6 Mar V. Compound Interest - I (Timeline, Use of Calculator, Partial
5
(Week 5) Payments)
9-13 Mar VI. Annuities – I (Simple Annuity, Use of Timeline, Formula
6
(Week 6) derivations)
16-20 Mar
7 Revision (Quiz Tests – 2 sets)
(Week 7)
23-27 Mar MID SEMESTER BREAK
30 Mar-03 Apr Mid-Semester Test
8
(Week 8) VII. Annuities – II (Perpetuity)
6-10 Apr
9 VIII. Annuities – III (General)
(Week 9)
13-17 Apr
10 IX. Repayment of Debts – I
(Week 10)
20-24 Apr
11 X. Repayment of Debts – II (Housing Loans)
(Week 11)
27 Apr-01 May
12 XI. Business Decisions (DCF, IRR)
(Week 12)
4-8 May
13 Revision (Quiz Tests – 2 sets)
(Week 13)
11-15 May
14 Revision (Quiz Tests – 1 set)
(Week 14)
18-22 May
15 STUDY BREAK
(Week 15)
25 May– 5 June EXAMINATIONS (Please ensure you know when and where your
16
(Week 16 & 17) examination will be held)

12. PRESCRIBED TEXT AND OTHER RESOURCES*

Tannous, K., Brown, B.L., Kopp, S. And Zima, P. 2013. Mathematics of Finance (2013 ed.
McGraw-Hill, Australia.
* Additional materials where needed will be posted on the Moodle

13. ALIGNMENT OF LEARNING OUTCOMES, ACTIVITIES AND ASSESSMENT

The following table demonstrates the alignment of the course learning outcomes to
appropriate activities and assessments and the links to programme and USP graduate
outcomes.

Associated Programme USP Graduate

Course Learning Teaching and Assessment Outcomes Outcomes
Outcome Learning Activities

Demonstrate Quizzes
understanding of Relevant lecture P1 1, 2, 3
Demonstration Mid-Term Test
basic
mathematics

FM101: Course Outline – Semester 1- 2020 Page 3

 (linear algebra, Reading Final Exam
materials/Case
programming, studies
basic calculus
and Tutorial Sets for
Practice
interpolations)
(L1)

Relevant lecture
Demonstration Mid-Term Test
L2: Explain the Reading Quizzes
concept of time materials/Case P1, P2 1, 2, 3, 7
value of money studies Final Exam
Tutorial Sets for
Practice
Relevant lecture
L3: Differentiate Demonstration
between simple Mid-Term Test
interest, Reading
materials/Case Quiz P2, P3, P4 1, 2, 3, 7
compound studies
interest and Final Exam
annuity Tutorial Sets for
Practice

L4: Identify and

compute present Relevant lecture
and future Demonstration
Quizzes
values in the Reading
context of materials/Case Final Exam P1, P2, P3, P4 1, 2, 3, 6, 7
simple interest, studies
compound Tutorial Sets for
interest and Practice
different types
of annuities.
L5: Apply tools in
Relevant lecture
finance for Demonstration
decision analysis P1, P2, P3, P4
related to Reading Quizzes
materials/Case 1, 2, 3, 6, 7
applications on studies Final Exam
housing loans,
bond valuation, Tutorial Sets for
Practice
and business
decisions

FM101: Course Outline – Semester 1- 2020 Page 4

 14. ASSESSMENT
14.1 ASSESSMENT PORTFOLIO

LEARNING
TYPE OF ASSESSMENT WEIGHT Comments/Rationale
OUTCOME
CONTINUOUS ASSESSMENT - 50%
Online Quiz (10) 20% Ten assessed online quizzes L1, L2 L3, L4
Mid-Semester Test 30% Closed book written Examination L2, L3. L4
FINAL EXAMINATION - 50%
Final Exam 50% Closed Book written Examination L1, L2, L3, L4

14.2 PASSING THE UNIT

In order to be awarded a pass in this unit, students must:

 Have at least 50% score in the course work, and score at least 40% (out of 100%) in
the final exam. Please note that the minimum passing mark in the final exam is
40/100. Marks below the 40% threshold in the final exam will result in a fail grade.

14.3 GRADE DISTRIBUTION

A+ A B+ B C+ C D E
85-100 78-84 71-77 64-70 57-63 50-56 40-49 0-39

14.4 ASSESSMENT POLICIES AND REGULATIONS

For detailed regulations, please refer to the USP Handbook and Calendar.

Plagiarism, copying materials from other sources without proper referencing and
acknowledge of the source is a serious offence and will be dealt with severely. In the
Regulations Governing Academic Misconduct section of the USP Handbook & Calendar
plagiarism is defined as “the copying of another person’s creative work and using it as one’s
own – without explicitly giving credit to the original creator. Work copied without
acknowledgement from a book, from another student’s work, from the internet or from any
other source”. If lecturer is satisfied that plagiarism has occurred, they will report the matter
to the Head of School. They can reduce marks appropriately. If the matter is seen as serious
enough it can be taken to the Student Disciplinary Committee by the Head of School.

15. IMPORTANT DATES

Activity Week Weighting (%)

Online Quiz (10 @ approx. 30 minutes each) 3,4, 6,7 10,11 12, 13 20%
Mid Semester Test 8 30%

16. ONLINE WORK

The course will be administered through Moodle. Course notices, lecture notes, tutorial questions,
assignment questions and assessment marks will be posted on the course Moodle page. Therefore
you should check your course Moodle page regularly for updates. If you have lost your USP password
or do not see your course on the Moodle after login, please contact the ITS student helpdesk.

FM101: Course Outline – Semester 1- 2020 Page 5

17. STUDENT SUPPORT

18.1 CONSULTATION & TUTORIALS

Also, students encouraged to make use of the online forum for discussion of matters related
to the relevant topic of the week. Students can email directly to me their concerns or
request for meeting outside the allocated times.
18.2 STUDENT LEARNING SUPPORT

Student Learning Support (SLS) provides the necessary academic and study skills to assist
students with their course requirements. There is a range of services that students can
participate in or use free of charge. These services are tailor made to help students tackle
and manage the requirements of tertiary education. These services include:
 Peer Mentoring Programme – high achieving senior students facilitate group
activities through which students are guided on study tips, problem solving, and
assessment preparation.
 Drop In Support - Students can drop in to meet with an SLS Specialist during the
operating hours at 091 – 013 (FBE SLS Hub) to seek assistance in assignment
planning, essay structure, referencing, understanding and selecting relevant study
skills, time management, speaking and reading skills and other related aspects. The
initial meeting should occur at least 3 weeks prior to the assignment due date.
 Academic Skills workshops – Either through the course or generally, workshops on
academic skills (Essay writing, Referencing, Reading and others) will be conducted.
Students are encouraged to attend.

The SLS Hub is located in Building 091(CELT Building), Room 013, Laucala (Upper) Campus.
The operating hours are Mondays - Thursdays: 9am - 5pm, Fridays: 9am – 4pm. For further
details and assistance, students may email: Pauline Ryland: [email protected] or
Roshila Singh: [email protected].

19. EXPECTATIONS OF STUDENTS

19.1 STUDENT RESPONSIBILITIES

Students are expected to:

 Attend/Review all lectures, tutorials, and team meetings etc. unless hampered by
illness in which case you must inform your course coordinator and team members.
 Spend enough time on Moodle and other activities required in the course
 Allocate sufficient time to work on the assignments.
 Inform the course coordinator with any proof that he/she was sick and unable to
attend classes or assessment at the earliest possible time to avoid getting a zero mark
for the missed assessment.
 Actively and participate through the weekly discussion forum. Students are
recommended to use the discussion forum or virtual chat rooms to ask and/or answer
questions, to enhance their online learning experience.

FM101: Course Outline – Semester 1- 2020 Page 6

 19.2 STUDENT WORKLOAD
Below is a suggestive time allocation table to assist you. This is based on a per week
workload and is to be taken as a rough guide. Each student should be able to work
out what works best for them to ensure that they successfully pass this course.

TYPE Hours Comments

per
week
Readings and practice 9  Students are to read the weekly material and working
tutorial exercises on the allocated tutorial questions.
Moodle activities/Moodle 3  Students enrolled in blended mode are expected to
work (Online Quizzes) allocate sufficient time for self-learning
 Online quizzes will be posted, and all students are
required to participate.
TOTAL 12

FM101: Course Outline – Semester 1- 2020 Page 7