ISMAT 154

Financial Calculus

• ApresentaçãoPresentation

  The Financial Mathematics course unit provides the fundamental knowledge required to understand and apply the time value of money in the analysis of financial operations. It is an essential tool in business management, enabling the evaluation of financing, saving, and investment options, as well as the comparison of different capital allocation alternatives. The course plays a key role in preparing managers to make informed and well-founded decisions, using financial calculation techniques and digital tools for support. It also establishes the foundation for more advanced courses in finance and investment analysis, strengthening the connection between theoretical concepts and practical management applications.
• ProgramaProgramme

  The Financial Mathematics course unit addresses the fundamental concepts required to understand the time value of money and to analyse financial operations commonly encountered in management. The syllabus is structured progressively, beginning with the basic principles of interest and interest rates, and subsequently covering techniques of compounding and discounting, capital equivalence, annuities, and loans. CP0 – Diagnostic of Essential Mathematical Concepts for Financial Calculations CP1 — Fundamentals of the Time Value of Money (TVM) CP2 — Interest Regimes and Basic Operations CP3 — Interest Rates and Equivalence CP4 — Equivalence and Consolidation of Capital CP5 — Annuities, Loans, and Amortisation CP6 — Digital Tools CP7 — Applications in Management
• ObjectivosObjectives

  LO1 – Explain and apply the fundamental concepts of the time value of money, interest, and interest rates. LO2 – Compute and interpret capitalization and discounting operations of capital at different points in time. LO3 – Identify, distinguish, and calculate the values of different types of financial annuities. LO4 – Analyze and compare loan amortization methods, applying appropriate financial mathematics techniques. LO5 – Use digital and analytical tools to support the resolution of practical financial mathematics problems.  
• BibliografiaBibliography

  Wang, S. (2024). Mathematics of finance. eCampusOntario Pressbooks. Recuperado de https://ecampusontario.pressbooks.pub/mathematicsfinance/ Alves, C., Alves, R., Ribeiro, C., & Farinha, J. (2023). Cálculo financeiro aplicado (3.ª ed.). Edições Almedina.    
• MetodologiaMethodology

  ME1 – Interactive theoretical-practical exposition: structured presentation of the syllabus content, supported by guided examples and the use of digital tools (e.g., Excel). ME2 – Resolution of practical cases and applied problems: exercises inspired by real-life situations of savings, investment, and financing, developed individually and in groups. ME3 – Challenge-Based Learning: mini-projects in which students analyse credit or investment proposals and justify decisions, simulating the role of a manager. ME4 – Digital resources and artificial intelligence: supervised use of support tools (spreadsheets and generative AI) for comparison of results, validation of calculations, and the development of critical thinking regarding limitations and risks. ME5 – Continuous feedback and self-assessment: quick digital quizzes throughout the classes, enabling students to monitor their progress against the intended learning outcomes.
• LínguaLanguage

  Português
• TipoType

  Semestral
• ECTS

  5
• NaturezaNature

  Mandatory
• EstágioInternship

  Não