module specification

MA4057 - Financial Mathematics (2023/24)

Module specification Module approved to run in 2023/24
Module title Financial Mathematics
Module level Certificate (04)
Credit rating for module 15
School School of Computing and Digital Media
Total study hours 150
105 hours Guided independent study
45 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
In-Course Test 40%   Test (1 hour, unseen)
Unseen Examination 60%   Exam (2 hours, unseen)
Running in 2023/24

(Please note that module timeslots are subject to change)
Period Campus Day Time Module Leader
Autumn semester North Thursday Afternoon

Module summary

This module develops the mathematical and statistical tools that are used in the mathematics of finance. This module introduces the basic terminologies used in finance and develops the mathematical techniques to solve real-life problems in finance. The module will provide an introductory knowledge of Excel, and Excel built functions in financial computing. The application of suitable software (e.g. Excel) will enable students to solve financial problems in order to draw valid conclusions and make informed decisions.

Prior learning requirements

Available for Study Abroad? NO.


Applications of AP and GP in Finance.

Introduction to financial measurements including simple and compound interest.

Annuity, Amortisation and Sinking Fund.

Index Numbers.

Introduction to Excel, and Excel built functions.

Mathematics of Finance.

Linear Programming.

Balance of independent study and scheduled teaching activity

Students’ learning is supported by blended learning via face-to-face learning activities that include lectures, seminars, individual and group-based case studies and investigations resourced by Weblearn. There is full provision of documents related to the module in electronic format that can be accessed by students all the time. The documents include lecture notes, slides, guidance to packages, exercises, self-assessed tests. Students are motivated to solve financial problems made available to them.

Learning outcomes

On successful completion of this module, students should be able to:

LO 1.    Apply AP for straight line depreciation and GP for declining balance depreciation in finance.

LO 2.    Demonstrate an understanding of the mathematical aspects of interest (simple, compound) as applied to financial instruments.

LO 3.    Construct amortisation schedule and describe its practical relevance in mortgages etc.

LO 4.     Use an appropriate software package (e.g., Excel) to solve financial problems, including linear programming problems.

Assessment strategy

The assessment consists of two sets of class tests.  

In the first test students are tested on their understanding of the basic financial mathematics and introduction to Excel.

The second test examines the understanding gained by the students regarding index numbers, construction of amortisation schedule/table, solving linear programming problems and interpretation of Excel output.

Formative assessments are given every week during the tutorial/seminar sessions while summative assessment feedback will be made available at the end of each test.


Core Text:

Zima, P and Brown, R (1998) Schaum’s Mathematics of Finance, McGraw-Hill.

Recommended Readings:

Guthrie, G and Lemon, L (2003) Mathematics of Interest and Finance, Prentice Hall.

Day, A. L. (2005). Mastering Financial Mathematics in Microsoft Excel. Great Britain: Pearson Education Limited.