Syllabus for Math 325 (Theory of
Interest)
Fall 2022 Semester at Lycoming College
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 MATH 129.
Course Goals
Goals
for this course include developing critical thinking skills, and the abilities
to apply both the techniques of calculus (i.e., derivatives, integration, infinite
series) and the available computer software (e.g., spreadsheets) with various
annuity functions, and in the calculation of present and accumulated value for
various streams of cash flows.
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.
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OFFICE
HOURS Find your instructor’s office hours at http://lycofs01.lycoming.edu/~sprgene/OffHrs.htm
, and write them here for
future reference. |
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Tutoring
Tutoring is available this semester at the Math
Center.
Disability
Support Services
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In keeping with the Americans with Disabilities Act
(and its amendments) and Section 504 of the Rehabilitation Act, Lycoming
College is committed to providing reasonable accommodations for students with
documented disabilities that impact their learning experiences. The Office of
Academic Services Deans coordinates disability support services (DSS), and
students can contact (570) 321-4358 or academicservices@lycoming.edu to set up a confidential conversation about the
disclosure and accommodation process. The Office of Academic Services Deans
is located in the second floor of the Krapf Gateway
Center. Further information regarding DSS is available at: https://www.lycoming.edu/academic-resource-center/disability-support/. |
Required Materials
Each
student must have
·
a copy of the
textbook: The Theory of Interest, 3rd
edition, by Stephen G. Kellison (ISBN: 978-007-127627
OR 978-0-07-338244-9, OR MHID: 007-127627-0)
·
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)
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a computer
account on the college network in order to access Excel and copies of several files which can
be accessed as follows:
Go to drive named Courses
(L:) on the college network.
Go to the folder named FAC_PRGS.
Go to the folder named Sprechini.
Go to the folder named MATH_325.
Course Links
Some Well-Known
Sums and Series
Grading
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Item |
Point
Values and Policies |
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Homework |
Homework
assignments are posted on the course schedule. Credit for
some homework is given after answering the corresponding questions in Moodle,
and credit for other homework is given after submitting the written work to
the instructor. Late work is never
accepted for any reason. If within 24
hours a student gives a legitimate reason (as judged by the instructor) for
not submitting an assignment on time, an alternative assignment and due date
may be given to allow student to earn the missed points; assignments not submitted
should be completed for practice and answers checked with a classmate, a
tutor, or the instructor. Homework assignments count for 40% of the
final grade; however, a student who misses submitting more than 10 homework
assignments automatically fails the course. |
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Semester Tests |
Several
semester tests are given, one about every two or three weeks; specific dates
are available from the course schedule. For each
missed test, a grade of zero is recorded, unless (1) the instructor is
presented with documented evidence of a medical reason for not completing the
test at the scheduled time, and (2) arrangements to make up the test are
made within 24 hours of the originally scheduled exam time. Semester
exams count for 40% of the final grade. |
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Final Exam |
The
final exam (administered during final exam week) counts for 20% of the final grade. |
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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. A
student with more than 8 unexcused absences automatically fails the course. |
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Somewhere
around 2700-3000 total points can be earned.
The course letter grade is determined from the percentage of points
earned out of the total number of possible points as follows: 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% |
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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 tests and the final exam, do all exercises suggested
for practice by the instructor, and start working on these early; don't wait
for the night before the test or 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.
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
Provost 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.