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Mathematical Interest Theory

Mathematical Interest Theory

By Leslie Jane Federer Vaaler and James Daniel

Catalog Code: MIT
Print ISBN: 978-0-88385-754-0
Electronic ISBN: 978-1-61444-600-2
656 pp., Hardbound, 2009
List Price: $89.95
MAA Member: $71.95
Series: MAA Textbooks

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Mathematical Interest Theory gives an introduction of how investments grow over time. This is done in a mathematically precise manner. The emphasis is on practical applications that give the reader a concrete understanding of why the various relationships should be true. Among the modern financial topics introduced are: arbitrage, options, futures, and swaps. The content of the book, along with an understanding of probability, will provide a solid foundation for readers embarking on actuarial careers.

On the other hand, Mathematical Interest Theory is written for anyone who has a strong high school algebra background and is interested in being an informed borrower or investor. The content is suitable for a mid-level or upper-level undergraduate course or a beginner graduate course.

Table of Contents

Preface
An Introduction to the Texas Instruments BA II Plus
The Growth of Money
Equations of Value and Yield Rates
Annuities (annuities certain)
Annuities with Different Payment and Conversion Periods
Loan Repayment
Bonds
Stocks and Financial Markets
Arbitrage, Term Structure of Interest Rates, and Derivatives
Interest Rate Sensitivity
Appendices
Bibliography
Index
About the Authors

About the Authors

Leslie Vaaler was born in Providence, Rhode Island. She is the daughter of Leila Federer and geometric measure theorist Herbert Federer. Leslie’s undergraduate degree is from MIT, and she received her Masters and PhD from Princeton University. Her thesis concerned problems in Iwasawa theory, an area of algebraic number theory.

Leslie’s first faculty positions were at the University of Michigan in Ann Arbor, Oklahoma State University, and Washington and Lee University. She is currently at the University of Texas at Austin where she serves as the Buck Consultants Associate Director of Actuarial Studies and Senior Lecturer in Mathematics. She has been teaching actuarial classes since 2000.

James W. Daniel was born in Indianapolis, IN. He received a BA from Wabash College, an MS and PhD in mathematics from Stanford, and an honorary ScD from Wabash College. Daniel is a life member of the MAA, where he has served on its Executive Committee of the Board of Governors as Chair of the Audit, the Budget, and the Building Committees and of the Publications Council. He has been an Associate of the Society of Actuaries (ASA) since 1991 and has served on various of its education-oriented committees. Since 1989 Jim has been the Director of the actuarial program at the University of Texas, where he is a member of the Academy of Distinguished Teachers. He is also known in the actuarial community as the teacher of intensive exam-prep review short courses for some of the actuarial professional exams. Daniel co-founded the Actuarial Faculty Forum and for many years organized the sessions on actuarial education at the Joint Mathematics Meetings.

Jim is the author of the books Elementary Linear Algebra and its Applications and of The Approximate Minimization of Functionals; he is the co-author of the second and third editions of Applied Linear Algebra (with Ben Noble) and of Computation and Theory in Ordinary Differential Equations (with Ramon Moore).

Student Solutions Manual

By Leslie Jane Federer Vaaler

Catalog Code: MIT-SM
Print ISBN: 978-0-88385-755-7
Electronic ISBN: 978-1-61444-603-3
120 pp., Paperbound, 2009
List Price: $35.95
MAA Member: $28.95
Series: MAA Textbooks

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This manual is written to accompany Mathematical Interest Theory. It includes detailed solutions to the odd-numbered problems. There are solutions to 239 problems, and sometimes more than one way to reach the answer is presented. In keeping with the presentation of the text, calculator discussion for the Texas Instrument BA II Plus or BA II Plus Professional calculators is typeset in a different font from the rest of the text.

Table of Contents

Preface
An Introduction to the Texas Instruments BA II Plus
The Growth of Money
Equations of Value and Yield Rates
Annuities (annuities certain)
Annuities with Different Payment and Conversion Periods
Loan Repayment
Bonds
Stocks and Financial Markets
Arbitrage, Term Structure of Interest Rates, and Derivatives
Interest Rate Sensitivity

 

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