Financial Mathematics For Actuarial Science The Theory of Interest

Financial Mathematics for Actuarial Science: The Theory of Interest is concerned with the measurement of interest and the various ways interest affects what is often called the time value of money (TVM). Interest is most simply defined as the compensation that a borrower pays to a lender for the use of capital. The goal of this book is to provide the mathematical understandings of interest and the time value of money needed to succeed on the actuarial examination covering interest theory.

Key Features

• Helps prepare students for the SOA Financial Mathematics Exam
• Provides mathematical understanding of interest and the time value of money needed to succeed in the actuarial examination covering interest theory
• Contains many worked examples, exercises and solutions for practice
• Provides training in the use of calculators for solving problems
• A complete solutions manual is available to faculty adopters online

1. Overview and Mathematical Prerequisites. 2. Measuring Interest. 3. Solving Problems in Interest. 4. Annuities. 5. Amortization Schedules and Sinking Funds. 6. Yield Rates. 7. Bonds. 8. Exact Asset Matching and Swaps. 9. Interest Rate Sensitivity. 10. Determinants of Interest Rates.

Richard James Wilders is Marie and Bernice Gantzert Professor in the Liberal Arts and Sciences and Professor of Mathematics at North Central College in Naperville, IL. He earned his B.S. from Carnegie Mellon University and his M.S. and Ph. D. from The Ohio State University.

He has taught the Financial Mathematics course at North Central since creating it some 20 years ago and wrote this book based on his experiences with North Central students. Draft copies of the present work have been used by 100 or so students over the past few years many of whom have made useful suggestions. In addition to Financial Mathematics, Wilders teaches calculus, statistics, finite mathematics, abstract algebra, and the history of mathematics and of science. He is a member of the Mathematical Association of America (MAA) and of the National Council of Teachers of Mathematics (NCTM).

He and his wife enjoy the Chicago theater and dance scene and are avid Ohio State football fans.