Syllabus for Math 325 (Theory of Interest)

Fall 2014 Semester at Lycoming College

Course Content

Thetheory 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.

Lycoming College provides academic support for students who officially disclose diagnosed learning, physical and psychological disabilities. If you have a diagnosed disability and would like to seek accommodations, please contact Jilliane Bolt-Michewicz, Assistant Dean of Academic Services / Director of the Academic Resource Center. Dean Bolt-Michewicz will help you arrange for appropriate academic accommodations. She can be reached by calling 570-321-4050, , or visiting her office (Academic Resource Center, 3rd Floor of Snowden Library).

Instructor(s)

Name / Office Location / Office Hours * / Office Phone
Dr. Gene Sprechini / Academic Center D311 / Mon 10:30-11:15am
Tue 10:00-10:45am
Wed 10:30-11:15am
Fri 10:30-11:15am / (570)
321-4288

*You may of course also see your instructor by appointment

Tutoring

General Tutoringis 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.)

Required Materials

Eachstudent 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 uptodate and complete.)
  • a TI-84 calculator or a financial calculator is highly recommended (but other calculators may be satisfactory)
  • a computer account on the college network in order to access Excel

Course Links

Course Schedule

General Tutoring

Some Well-Known Sums and Series

Interest Solver Excel Spreadsheet

Amortization Table

Grading

Item / Point Values and Policies
Homework / Homework assignments are given at the end of each class;the assignment due for the following class is announced and is posted in red the course schedule. The total number of possible homework points for the semester will be between600 and 800.
Late homework 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 will be given to allow student to earn the missed points; homework assignments not submitted should be completed for practice and answers checked with a tutor or the instructor. A student who misses submitting more than 10 homework assignments automatically fails the course.
Semester Tests / Six semester tests are given, one about every two weeks; specific dates are available from the course schedule. Each semester test is worth 100 points, so that the total number of possible test points for the semester is 600. 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. While each test covers primarily the course material for the two or three weeks prior to the test, test questions may come from any previously covered material (i.e., each test could be considered cumulative).
Final Exam / Thefinal exam (administered during final exam week) is worth 200 points.
Attendance / Thefinal 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.
Between 1400 and 1600 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 asfollows:
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%

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.

Syllabus for MATH 400 (Theory of Interest)- Page 1