Dr.

Mann's ACF329, Spring 2016

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http://www.ma.utexas.edu/users/jmann/sp16ACF329.html

Dr. Mann's ACF329, Spring 2016

Theory of Interest
Unique #52880 and #53835
CLASS MEETINGS

MWF 10:00 - 10:50 am in CPE 2.212

INSTRUCTOR

Dr. Mann
Jennifer K. Mann Austin, Ph.D.
Office: RLM 11.150
Office Hours: Mondays 12:30 - 1:30 pm, Wednesdays 1:00 - 2:00 pm, Thursdays 11:30 - 12:30 pm, and by
appointment
Email: jmann@math.utexas.edu
Website: http://www.ma.utexas.edu/users/jmann/

TEXT

of America.

Mathematical Interest Theory, Second Edition, Vaaler & Daniel, Mathematical Association

SUPPLEMENT

Student Solution Manual for Mathematical Interest Theory, 2nd Edition, Vaaler,
Mathematical Association of America.

CALCULATORS

You are required to have a financial math calculator and to bring it with you to
class daily. You are advised to use the Texas Instruments BAII Plus calculator or the Texas Instruments BAII
Plus Professional calculator. These calculators have the advantage of being approved by the SOA. Also, our
textbook gives detailed instructions on how to use them. Please have one ready by Wednesday, January 20
and bring it to class.

HONOR CODE

The class is expected to uphold The University of Texas at Austin Honor Code.
The core values of the University of Texas at Austin are learning, discovery, freedom, leadership, individual
opportunity, and responsibility. Each member of the University is expected to uphold these values through
integrity, honesty, trust, fairness, and respect toward peers and community.

QUANTITATIVE REASONING

This course carries the Quantitative Reasoning flag.

Quantitative Reasoning courses are designed to equip you with skills that are necessary for understanding the
types of quantitative arguments you will regularly encounter in your adult and professional life. You should
therefore expect a substantial portion of your grade to come from your use of quantitative skills to analyze
real-world problems.

INDEPENDENT INQUIRY

This course carries the Independent Inquiry flag. Independent

Inquiry courses are designed to engage you in the process of inquiry over the course of a semester, providing
you with the opportunity for independent investigation of a question, problem, or project related to your
major. You should therefore expect a substantial portion of your grade to come from the independent
investigation and presentation of your own work.

ATTENDANCE POLICY

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You are expected to attend all class meetings. If you are absent, do not email or otherwise contact me to ask
what material we covered during class, what the assignments are, what sections the exams will cover, or any
other questions that I have answered or will answer during class. I realize that sometimes an absence is
necessary. In such a situation, you should contact a classmate to get notes and information for the class you
missed. It is a good idea to work together throughout the semester.

SEMESTER EXAM DATES

There are three in-class exams during the semester. There will be no makeup exams. If you miss an exam and
have a valid excuse (e.g., a broken leg, not a party the night before), then your score will be replaced by
your score on the final examination. If you miss an exam without a valid excuse, your score will be a zero.
Use of approved calculators is expected during exams. If a student misses a semester exam, then he or she
will need to meet individually with Dr. Mann to determine whether a medical withdrawal or an incomplete is
appropriate.
Exam 1: Friday, February 12
Exam 2: Friday, March 11
Exam 2: Friday, April 15

FINAL EXAM DATE

Wednesday, May 11, 2016, 9:00 am - 12:00 pm

See the university schedule here: http://registrar.utexas.edu/schedules/162/finals
The mandatory final exam will be a cumulative, in-class exam. You cannot miss this, so plan accordingly.
Final exams are not returned to students.

HOMEWORK

Homework will be posted in Canvas. Homework is due via online submission by 5:00 pm Fridays as
indicated on the Canvas calendar. You must upload a pdf file of your homework in Canvas. Homework must
be typed using appropriate mathematical typesetting, such as LaTeX or MathType. Only a portion of
each homework assignment will be graded for accuracy, although all problems will be graded for attempt.
Students are encouraged to discuss all aspects of the course with each other. However, each student should
type and submit their own solutions to homework problems. Copying another student's solution or that from
another text is a violation of the honor code and fails to contribute to your personal mathematical
development. Students must show ALL work to each solution. No late homeworks will be accepted for any
reason! No credit will be given for unsupported answers. This means that all work should be shown,
neatly and logically, using correct notation.

CLASS PARTICIPATION

When Dr. Mann leads the class presentation there will be ample opportunities for students to contribute to the
class discussions. Students are expected to answer directed questions, to ask questions for any needed clarity,
and to add helpful comments. Students will work in groups and present problems during class meetings.
When either Dr Mann or a student is presenting, the other classmates are required to ask questions and make
certain they understand what has been presented. The presenter has the first opportunity to address any
questions or comments, and then other classmates are encouraged to contribute. Student presentations will
come from assigned homework problems, group work, exam review problems, and class discussions. Your
participation grade will be based upon attendance, individual presentations, contributions to class discussions,
effort exhibited in class, and engagement in group work. Three well presented problems will earn a student a
class participation grade of 75 (on a 100 point scale). Up to 25 additional points may be earned through a
combination of extra problem presentations and contributing to class discussions.

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GRADING

14% Homework
16% Class Participation
16% Exam 1
16% Exam 2
16% Exam 3
22% Final Exam
The lowest exam grade will be replaced by the final exam grade if the final exam grade is higher than the
lowest exam grade. Grades will be recorded in Canvas. Canvas is NOT used to determine your semester
grade in this course. Canvas is only used as a means to store and share your grades. All of your individual
grades will remain in Canvas as the score you originally earned on each of them. Your semester grade for the
course is determined as detailed in this syllabus. No semester assignments will be accepted after the last day
of classes Friday, May 6, 2016. Your final exam grade is final and non-negotiable. Thus, any discussions of
your course grade must occur prior to the final exam administration.
Plus/minus grades will be assigned for the final grade as follows: A (100-92.6), A- (92.5-89.6), B+
(89.5-86.6), B (86.5-82.6), B- (82.5-79.6), C+ (79.5-76.6), C (76.5-72.6), C- (72.5-69.6), D+ (69.5-66.6), D
(66.5-62.6), D- (62.5-59.6), F (59.5-0).

PREREQUISITE

M408D or M408L, with a grade of at least C-.

COURSE DESCRIPTION

This course covers the mathematical theory of interest with

applications to investments and corporate finance. Topics include accumulation of interest in discrete and
continuous time, nominal and effective interest, present and future values, annuities and variable cash flows,
yield rates, amortization schedules, loans, valuation of stocks, bonds and other securities, and the assessment
of corporate financial performance using standard financial models. The material is chosen to help prepare
students that are taking the Financial Mathematics Exam, also referred to as Exam FM by the SOA (Society
of Actuaries) and Exam 2 by the CAS (Casualty Actuarial Society). See http://www.soa.org/education
/exam-req/ for further details regarding these exams.

COURSE WEBSITE

http://www.ma.utexas.edu/users/jmann/sp16ACF329.html
Additionally course notes, exam review guides, grades, and other essential course information will be posted
in Canvas and/or the course Facebook group. Exam dates, the course schedule, and homework assignments
will be shown on the calendar.

ADVICE FOR SUCCESS

Actively participate in the course by attending class, participating in class discussions, asking questions in
class, working the assigned homework problems, and utilizing the office hours of Dr. Mann.
Before you email me to ask a question about the rules and procedures of this course, please read through this
syllabus to see if the answer is written here. I diligently tried to include here any information that you might
ask; please utilize it.

SERVICES AVAILABLE TO STUDENTS

The University of Texas provides appropriate academic accommodations for qualified students with
disabilities. Students with disabilities may request appropriate academic accommodations from the Division
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of Diversity and Community Engagement, Services for Students with Disabilities, 471-6259.
http://www.utexas.edu/diversity/ddce/ssd/

COMPUTER LAB

The mathematics department's 40 seats undergrad computer lab, RLM 7.122, is open to all students enrolled
in math courses. Students can sign up for an individual account themselves in the computer lab using
their UT EID. We have most of the mainstream commercial math software: mathematica, maple, matlab,
magma, and an asortment of open source programs.
RLM Building Hours are:
M-Th: 6:00am -- 11:00pm
F: 6:00am -- 10:00pm
Sat: 6:00am -- 5:00pm
Sun: 2:00pm -- 11:00pm

STUDENT CONDUCT

Silence all cell phones and other noise makers. Please come to class on time. If you will be late or need to
leave early for some legitimate reason, please tell me in advance. Coming and going during class is
distracting to your fellow students and the instructor, and we do not like it.

PLANNED TOPIC and EXAM SCHEDULE

http://www.ma.utexas.edu/users/jmann

/sp16ACF329_cal.pdf
Deviations from this tentative calendar may occur during the semester. The actual material covered each day
can only be determined by attending class.

RELIGIOUS HOLIDAYS

By UT Austin policy, you must notify me of your pending absence at least fourteen days prior to the date of
observance of a religious holy day. If you must miss a class, an examination, a work assignment, or a project
in order to observe a religious holy day, you will be given an opportunity to complete the missed work within
a reasonable time after the absence.

DEADLINES FOR DROPPING A COURSE

February 3, 2016 is the last day to drop a class for a possible refund. If you drop a class on or before February
3 (12th class day), the class will not show up on your transcript. If you drop a class after that date, the course
will show up on the transcript with a "Q" grade. After April 4, 2016 it is not possible to drop a course except
for extenuating (usually non-academic) circumstances. See the full UT academic calendar,
http://registrar.utexas.edu/calendars/15-16.

EMERGENCY EVACUATION POLICY

Occupants of buildings on The University of Texas at Austin campus are required to evacuate buildings when
a fire alarm is activated. Alarm activation or announcement requires exiting and assembling outside.
Familiarize yourself with all exit doors of each classroom and building you may occupy. Remember that the
nearest exit door may not be the one you used when entering the building. Students requiring assistance in
evacuation shall inform their instructor in writing during the first week of class. In the event of an evacuation,
follow the instruction of faculty or class instructors. Do not re-enter a building unless given instructions by
the following: Austin Fire Department, The University of Texas at Austin Police Department, or Fire
Prevention Services office.

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Behavior Concerns Advice Line

BCAL: 512-232-5050
Link to information regarding emergency evacuation routes and emergency procedures can be found at:
www.utexas.edu/emergency

Actuarial Science Club

http://www.ma.utexas.edu/dev/asc/

Return to Dr. Mann's Home Page

http://www.ma.utexas.edu/users/jmann/

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Dr. Mann's ACF329

#52880 and #53835
Spring 2016
MWF 10:00 am

Week
Jan 20 - 22
Jan 25 - 29
Feb 1 - 5
Feb 8 - 12
Feb 15 - 19
Feb 22 - 26
Feb 29 - Mar 4
Mar 7 - 11
Mar 14 - 18
Mar 21 - 25
Mar 28 - Apr 1
Apr 4 - 8
Apr 11 - 15
Apr 18 - 22
Apr 25 - 29
May 2 - 6
Test
Exam 1
Exam 2
Exam 3
Final

Jennifer K. Mann Austin, PhD

MLK Day
1.5
1.8, 1.9
1.12, 1.14
2.1, 2.2
2.7
3.4, 3.5
3.8, 3.9
3.13
5.1, 5.2
6.3, 6.4
6.9
7.1
8.3
9.3

Date

12-Feb
11-Mar
15-Apr
11-May

Ch. 0, 1.1, 1.2

1.6
1.10
Flex/Review
2.3, 2.4
3.1, 3.2
3.6
Flex/Review
Spring Break
Ch. 4
5.3
6.5
Flex/Review
7.4
SOA
9.4

1.3, 1.4
1.7
1.11
Exam 1
2.4, 2.5
3.2, 3.3
3.7, 3.8
Exam 2
Ch. 4
6.2
6.5
Exam 3
8.2
9.2
Review

Sections

Ch 1
Ch 2, 3
Ch 3, 4, 5, 6
All sections

jmann@math.utexas.edu

RLM 11.150