MATH 424 - Compound Interest and Life Insurance
Section: 101
Term: SP 2009
Subject: Mathematics (MATH)
Department: LSA Mathematics
Requirements & Distribution:
Waitlist Capacity:
Advisory Prerequisites:
MATH 215, 255, or 285 or permission of instructor.
This course counts toward the 60 credits of math/science required for a Bachelor of Science degree.
May not be repeated for credit.
Primary Instructor:

This course explores the concepts underlying the theory of interest and then applies them to concrete problems. The course also includes applications of spreadsheet software. The course is a prerequisite to advanced actuarial courses. It also helps students prepare for the Part 4A examination of the Casualty Actuarial Society and the Course 140 examination of the Society of Actuaries. The course covers compound interest (growth) theory and its application to valuation of monetary deposits, annuities, and bonds. Problems are approached both analytically (using algebra) and geometrically (using pictorial representations). Techniques are applied to real-life situations: bank accounts, bond prices, etc. The text is used as a guide because it is prescribed for the Society of Actuaries exam; the material covered will depend somewhat on the instructor. MATH 424 is required for students concentrating in actuarial mathematics; others may take MATH 147, which deals with the same techniques but with less emphasis on continuous growth situations. MATH 520 applies the concepts of MATH 424 together with probability theory to the valuation of life contingencies (death benefits and pensions).

MATH 424 - Compound Interest and Life Insurance
Schedule Listing
101 (LEC)
TuWF 10:00AM - 12:00PM
NOTE: Data maintained by department in Wolverine Access. If no textbooks are listed below, check with the department.

ISBN: 9780131472853
Mathematical interest theory, Author: James W. Daniel, Leslie Jane Federer Vaaler., Publisher: Pearson/Prentice Hall 2007
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