QNM106 - Mathematics of Finance

Outline info
Last revision date 2018-07-03 22:29:10.928
Last review date 2018-07-03 22:29:10.93

Subject Title
Mathematics of Finance

Subject Description
This one semester subject provides students with the fundamentals of mathematics for business and finance. Students will study topics relevant to both service organizations and merchandise operations.

Credit Status
One credit.

Learning Outcomes
Upon successful completion of this subject the student will be able to:


  1. Apply ratios, proportions and percents to solve a variety of business problems, as indicated by:
    1. setting up, manipulating and using ratios to solve allocation problems;
    2. setting up, solving and using proportions to solve problems involving the equivalence of two ratios;
    3. finding percentages, computing rates percent, finding the base for a rate percent, and applying these skills to solve business problems;
    4. solving problems of increase and decrease including the finding of the rate of increase or decrease and the original quantity on which the increase or decrease is based.
  2. Determining gross earnings for employees remunerated by the payment of salaries, hourly wages, or commissions as indicated by:
    1. determining hourly rates;
    2. computing overtime pay;
    3. finding straight/graduated commissions;
    4. calculating gross pay per pay period
  1. Determine trade discounts, cash discounts, mark-up and mark-down, as indicated by:
    1. solving problems involving trade discounts, including discount series and equivalent single rates of discount;
    2. dealing with the three most commonly used methods of cash discount;
    3. solving problems involving margin based on either cost or selling price;
    4. solving pricing problems involving mark-up, mark-down and discounts.
  1. Use exchange rate calculations, as indicated by:
    1. converting currency amounts between two countries;
    2. using exchange rate calculations to determine cost of goods bought in foreign countries considering taxes and duties.
  1. Perform Cost-Volume-Profit Analysis using either the contribution margin or the algebraic approach to:
    1. calculate and explain the effect of a change in sales activity on variable costs and net income;
    2. compute the break-even point in sales units and dollars;
    3. compute sales in units and dollars to achieve a desired net income.
  1. Solve commercial problems involving simple interest, discounts, and partial payments, as indicated by:
    1. determining the exact time in days between two dates;
    2. computing the exact simple interest by means of the formula I = Prt;
    3. finding the principal, rate or time from the formula I= Prt;
    4. using the formula S = P(1 + rt) to find the maturity value when the principal, rate and time are given;
    5. using the formula P = S(1 + rt)-1 to compute the principal (or present value) when the maturity value, rate and time are given;
    6. using the above concepts to evaluate common investment products (e.g. GICs, Treasury Bills, Commercial Paper, etc.)
  1. Analyse problems involving the time value of money, compound interest and compound discount, using formulae or a financial calculator, as indicated by:
    1.  compute future values, including problems involving changes in rate of interest and principal;
    2. compute the present value of future sums of money;
    3. discounting commercial paper;
    4. solving problems while computing periodic, nominal and effective rates of interest and determining the number of conversion periods.
  1. Analyse annuities and their applications to loans, investments, mortgages, and perpetuities, using formulae or a financial calculator, as indicated by:
    1. For ordinary and general annuities,
      1. computing the future value
      2. computing the present value
      3. computing the periodic payment
      4. computing the term
    2. For ordinary and general perpetuities,
      1. computing the present value
      2. computing the periodic payments
    3. For ordinary and general annuity due,
      1. appropriate applications

Essential Employability Skills
Execute mathematical operations accurately.

Apply a systematic approach to solve problems.

Use a variety of thinking skills to anticipate and solve problems.

Manage the use of time and other resources to complete projects.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

No required prerequisite, but students should have Grade XII English and Mathematics. 

Topic Outline

  • Payroll
  • Trade and cash discounts - terms of payment;
  • Mark-up, mark-down, applications;
  • Exchange rates & conversions, cost volume profit analysis;
  • Simple interest;
  • Applications of simple interest, GIC's, T-Bills, commercial paper;
  • Compound interest, future and present value, "i" and "n" calculations;
  • Effective and equivalent rates of interest, equivalent payment streams;
  • Annuities, terminology, future value;
  • Annuities present value, "PMT" and "n" calculations;
  • Perpetuities, annuities due; 

Mode of Instruction
A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Blended / Hybrid
Delivery is mixed, blending face-to-face instructions and facilitating out of classroom experiences, group and/or online instructions.

This subject is delivered online. This may involve the use of digital materials and/or a text, group discussions, interaction with your instructor and online activities. 

Prescribed Texts
Online, In-class and Blended (Hybrid):
Title:        Mathematics of Business and finance (text and access to the Online Lessons and Online Labs)
Edition:    3rd
Author:     Daisley, Kugathasan, Huysmans
Publisher:  Vretta
ISBN:       9781927737217

Reference Material

Required Supplies
All students require a non-programmable scientific calculator. 

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor prior to the assignment due date so that an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks from the due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail. Please ensure that all assignments and reports are properly documented.

Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:   http:/senecacollege.ca/library

Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the event of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency
The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this course in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:

In-class and Blended (Hybrid) delivery

Assignments 10%
2 Quizzes @ 10% each   20%
Mid-Term Test 30%
Final Exam 40%

Online Delivery
Assignments (4 @ 10%) 40%
Midterm 25%  
Final Exam 35%

Please retain this course outline document for future educational and/or employment use.

Academic Program Manager:

Emiliano Introcaso

Approved by: Academic Program Manager Emiliano Introcaso