Revised (07-53) DELAWARE TECHNICAL & COMMUNITY COLLEGE Campus: WILMINGTON Department: MATHEMATICS Course Number and Name: MAT 155 Mathematics of Finance Pre-requisites: MAT 015 - Elementary Algebra Course hours and Credits: 3:0:3 Course Description: A study of the mathematics of buying and selling, personal finance, depreciation, inventory control, payroll, banking, annuities, business statistics, and applied problems. Required Text: Miller/Salzman, Business Mathematics, Pearson/Addison Wesley, 2006. Method of Instruction: Classroom Lecture Required Equipment: Each student is required to have an electronic calculator capable of scientific calculations. The math department strongly recommends the TI 84 PLUS calculator. Core Course Performance Objectives: At the end of this course, the student will be able to: 1. Solve application problems involving the mathematics of buying and selling. 2. Analyze problems involving personal finance. 3. Solve application problems involving depreciation. 4. Solve application problems involving inventory control. 5. Use principle of accounting mathematics to prepare financial statements and ratio analysis. 6. Solve application problems involving annuities and sinking funds. 7. Solve application problems involving insurance and securities. 8. Draw and analyze graphs, solve problems in business statistics with applications. Measurable Performance Objectives: 1. Review the fundamentals of the Mathematics of Finance. 1.1 Perform basic operations using positive and negative rational numbers. 1.2 Solve linear equations in one variable. 1.3 Solve applications problems, including percents, using proportions. 1.4 Solve application problems, including percents, using linear equations. 2. Solve application problems involving the mathematics of buying and selling. 2.1 Compute the net price, given the list price and a single trade discount. 2.2 Compute the net price and the single discount equivalent, given the list price and a series of discounts. 2.3 Compute the cash discount and the amount due given the invoice amount, the invoice date, the payment date, and the terms of the invoice. 2.4 Compute the selling price, markup, percent of markup or cost of an item, when the markup is based on cost. 2.5 Compute the selling price, markup, or cost of an item, when the markup is based on selling price. 2.6 Compute the markdown, percent of markdown, or the sale price of an item. 2.7 Compute the turnover at cost and the turnover at selling price. 2.8 Use EXCEL to calculate amounts of discount and net prices. 3. Analyze problems involving personal finance. 3.1 Compute simple interest problems: the interest, principle, time or rate of personal loans. 3.2 Compute the exact and ordinary interest given the principle, rate and time of personal loan. 3.3 Find the exact time and the approximate time between two given calendar dates for a personal loan. 3.4 Prepare reconciliation of personal banking statements. 4. Solve application problems involving depreciation. 4.1 Compute the annual and total depreciation of an asset, using the straight line method. 4.2 Compute the annual and total depreciation of an asset, using the declining balance method. 4.3 Compute the annual and total depreciation of an asset, using the MACRS method. 5. Solve application problems involving inventory control. . 5.1 Compute the average inventory, when inventory is taken at cost. 5.2 Compute the average inventory, when inventory is taken at selling price. 6. Calculate gross and net pay for employees earning wages, salaries and commission. 6.1 Compute monthly and weekly gross earnings, given the amount of the annual salary. 6.2 Compute hourly rate given weekly, biweekly, semi-monthly or annual salary. 6.3 Compute gross earnings, given the salary, the overtime rate, and the number of hours worked. 6.4 Compute gross earnings, given the rate of commission and net sales. 6.5 Compute gross earnings, given the piecework rate and the amount of production. 6.6 Compute various types of deductions including: Federal Withholding Tax, FICA (Social Security Tax), State and/or Local Withholding Tax. 6.7 Compute net pay. 7. Solve application problems involving annuities and sinking funds. 7.1 Compute the discount and the proceeds for a non-interest bearing note. 7.2 Compute the maturity value, the discount, and the proceeds for an interest-bearing note. 7.3 Compute the amount, discount rate, or time for an interest-bearing note. 7.4 Compute the compound amount, the compound interest, and the present value, using the compound interest formula and the compound interest tables. 8. Draw and analyze graphs. 8.1 Construct a frequency distribution from a data set. 8.2 Construct a bar graph, picture graph, line graph, component part graph, histogram, and frequency polygon from a given set of data. 8.3 Construct a bar graph, picture graph, line graph, histogram, pie chart and frequency polygon from a given set of data on a computer using EXCEL. 8.4 Interpret pictorial and tabular representation of data. 9. Solve problems in business statistics with applications. 9.1 Calculate and interpret the mean, median, mode, and mid-range. 9.2 Calculate and interpret the range. Evaluation Criteria: Students will demonstrate proficiency on all Measurable Performance Objectives at least to the 75% level. The grade will be determined using the College Grading System. 92 – 100 = A 83 – 91 = B 75 - 82 = C 0 – 74 = R Students should refer to the Student Handbook for further information on Academic Standing Policy, Academic Honesty Policy, Student Rights and Responsibilities and other policies relevant to their academic progress.
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