## MATH 301 - ECO 351 THEORY OF INTEREST Spring 2003

 INSTRUCTOR: Prof. KARIN REINHOLD Office: ES 128 A Phone: 442-4641 e-mail: reinhold@math.albany.edu Office Hours: T Th 1:30 - 2:30, or by appointment. TEXT: The Theory of Interest by Stephen Kellison 2nd Ed. Irwin. CALCULATOR: Actuarial calculator to be obtained from the Society of Actuaries. 475 N. Martingale Rd., Suit 800, Schaumburg, IL 60173--2226. Phone: (847) 706--3500, Fax: (847) 706--3599

Assignments
Chapter 3 text file, pdf file.
Chapter 4 text file, pdf file.
Chapter 5 text file, pdf file.
Chapter 6 text file, pdf file.
Chapter 7 text file, pdf file.
Chapter 8 text file, pdf file.

### Course description:

T & Th 11:15-12:35 FA 126
This course will cover the basics of theory of interest: simple and compound interest, annuities, yield rates, bonds and securities and practical applications.

This course is a preparation for part of the Actuarial Exam Course 2. As a prerequisite for this course you should be familiar with the geometric sum (from Calculus II), integrating functions, specially the logarithm and be familiar with the properties of the logarithm and exponential functions (from Calculus I).

There is a lot of material to cover for the exam. Most of the concepts are inter-related and based on the simple ideas governing compound interest. I will try to make it as easy for you as possible, helping you with summaries. The hard part of the course is getting use to do word problems with several steps and remembering formulas. We will discuss as many problems as time allows. You will be required to come up to the board to solve problems on a regular basis.

The grade in the course will be based on four in--class exams, a comprehensive final exam, plus class participation and home assignments. To pass the course you need to obtain a total average of 50\% or more, must not fail more than one exam (without counting the final).

It is your responsibility to be aware of the dates of the exams and the content and due date of assignments. If you miss a class, it is your responsibility to be aware of the topics discussed during that class, the assigned homework and the and the possibly given assignment.

There is no reason to miss an exam other than getting sick (bring note from doctor), being on a team that has a game at the same time an exam is given (bring a note from your coach), or a death or serious illness in your family (bring a note from your family). In the event you can not attend an exam, you must notify me in advance, otherwise your grade for that exam will be 0. You can contact me by phone (leave a message if I'm not in), stop by my office (leave a note if I'm not in) or send me an e-mail.

EXAM SCHEDULE:
Exam 1: Feb 11 Chapters: 1, 2
Exam 2: Feb 27 Chapter: 3
Exam 3: Apr 1 Chapters: 4, 5
Exam 4: May 6 Chapters: 6, 7, 8
Final Exam: May 15, 1-3 pm, Chapters 1 - 9

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