LA SALLE COLLEGE ANTIPOLO

Tertiary Education Unit

BMTH2: Mathematics of Investment

Second Semester, AY 2015-2016

Instructor: Mr. Jay-R M. Mendoza

I. COURSE DESCRIPTION

The Mathematics of Investment course is a mathematical treatment of the methods used in the evaluation of
fixed income securities. It is a course, which will enhance the student’s mathematical understanding of Debt
Instruments. The course will discuss the mathematical foundations of such fixed income instruments as
mortgages and bonds. The mathematical aspects will be applied to various applied topics, such as mortgage
refinance, present value of structured settlements, the effects of interest rate variation on the price of bonds, and
debt immunization. Several cases will be assigned. Moreover, the course is design to provide an understanding of
current and actual Philippine business trends and practices. The course involves computation and problem solving
on simple and compound interest, annuities, amortization, depreciation, sinking funds, bonds, and perpetuity.
Students should have prerequisite knowledge of Basic Calculus and Business Math 1.

II. COURSE CREDIT: 3 units / 3 hours per week

III. DESIRED LEARNING RESULTS

Expected Lasallian ELGAs translated into Content and Transfer Goals

Graduate Attributes
(ELGAs) Learners are enabled to:

Creative and Critical  Analyze, Manipulate, and Computesimple interest using actual and
Thinker approximate time; including anuities, depreciation and perpetuity.
 Constructan amortization and sinking fund schedule.
 Determinethedifferent terminology of bonds, stock market, and
trading.

Lifelong Learner  Exhibitthe spirit of Faith in God and on oneself by believing that even the
(God-Loving) most difficult problems can be learned and solved with hard work and
honesty.
 Demonstratethe spirit of Zeal by responding positively and logically to
mathematical problem solving by considering it as a blueprint of solving
actual difficulties in the real world.
 Manifestthe spirit of Communion by synergistically cooperating with
others, practicing initiative and helpfulness in accomplishing individual and
group tasks.

Committed to  Appreciatethat attention to details, organized work and promptness are of

prime importance in any mathematics course and mediocrity cannot be an

BMTH2: Mathematics of Investment (Syllabus) Page 1 of 7

 Excellence acceptable trait.
 Ensureaccuracy of concrete solution to real-life problems.
 Embody confidence yet maintaining humility in dealing with work
presentation.

Nationalistic and  Analyzeand offer reasonable solution to prevalent community and national
Patriotic Individual issues using an appropriatemathematical approach.
 Optimizeand responsibly use the available resources to further appreciate
and improve the wealth of one’s community.

IV. FINAL PRODUCT / PERFORMANCE TASK

1. Capstone Project

Students are expected to conduct an investigative business plan on any business-related issue of
their choosing, where they can apply the use of mathematics of investment. The oral presentation
of survey research results must be encoded using MS PowerPoint. All requirements in this
capstone project must be submitted in both hard and soft copies and will form a part of the Course
Portfolio. Attached in this syllabus is the grading rubric that will be used in grading the capstone
project of the students.

2. Project(Archive of Mathematics of Investment lessons)

Students will be asked to provide one notebook intended for BMTH2: Mathematics of Investment
course only. In this notebook, students will archive all the examples during class discussion,
assignments, exercises, problem sets, quizzes, and examinations they will be having. Thus, this
will serve as their review material for examinations and future purposes. Attached in this syllabus
is the grading rubric that will be used in grading the archive of the students.

3. Quizzes, Assignments and Exercises

4. Recitations and Class Participation
5. Written Examinations

V. RUBRICS
Grading Rubric for Investigative Business Plan
(The End Term Capstone Project for Mathematics of Investment)

Needs
Criteria Outstanding Good Work Could Do Better Score
Improvement

BMTH2: Mathematics of Investment (Syllabus) Page 2 of 7

 The proponents tried
The proponents
The proponents used to use the appropriate
used
most appropriate The proponents used concept in
inappropriate
Content
concept in appropriate concept in investigating the
concept in
investigating the investigating the problem assigned to
investigating the
problem assigned to problem assigned to them. They stick to
problem assigned
them. They didn’t them. They tried to the problem and
to them. They had
stick on the structure explore the given ensure they follow the
a lot of errors in
of the problem, problem. The structure accordingly.
solving the
however they went proponents showed an The proponents tried
problem. The
beyond it.The understanding of the to show an
proponents
proponents showed lesson from the understanding of the
showed
mastery of the lesson statement of their concepts with
misconceptions in
from the statement of problem up to their tolerable errors from
almost all parts of
their problem up to conclusion. the statement of their
the investigative
their conclusion. problem up to their
business plan.
conclusion.
Points: 25 points 22 points 18 points 15 points
The proponents
Reasoning Skills

had a poor
The proponents tried analytical and
The proponents’
The proponents’ to show their logical thinking
analytical and logical
analytical and logical analytical and logical skills during the
thinking skills were
thinking skills were thinking skills during entire
evident during the
somehow evident during the entire presentation.
entire presentation.
the entire presentation. presentation. They Their assertions
Their arguments
Their responses were tried to provide valid and arguments
were all supported
supported with valid evidences in their were not valid.
with valid evidences.
evidences. They assertions. They tried They had a hard
They think deeply
somehow think deeply to think deeply before time to process
before they rebut in a
before they rebut. they laid their the questions and
timely manner.
rebuttals. provide answers
in a timely
manner.
Points: 22 points 19 points 16 points 14 points
Almost all of the Some of the Almost all of the
proponents sound Some of the proponents proponents tend to proponents tend
confident and sound confident and sound uncertain. Some to sound
knowledgeable knowledgeable during of them had fillers and uncertain,
during the entire the entire presentation. hesitations. Some of unfocused and
presentation. Almost Some of them used them had improper lacking of self-
Communic all of them used appropriate terms and gestures. Some of confidence.
ation
appropriate terms proper gestures. Some of them spoke Almost all of them
Skillsand
Gestures and proper gestures. them tried to establish a unconsciously. Some had improper
Almost all of them rapport with their of them were reading gestures and had
built a rapport with teammates and some the slides presentation stuttering. Almost
their teammates and tried to not lose an eye- while trying to build a all of them were
had an eye-to-eye to-eye contact with rapport with their reading the entire
contact with their their critique. teammates and with presentation and
critique. their critique. looked like they

BMTH2: Mathematics of Investment (Syllabus) Page 3 of 7

 didn’t know what
they were doing.
Points: 20 points 17 points 15 points 13 points
The proponents tried
The proponents The proponents
Appearance

The proponents wore to wore appropriate

somehow wore wore
Physical

appropriate attires attires during the

appropriate attires inappropriate
during the presentation. They
during the presentation. attires during the
presentation. They tried to dress
Some were properly presentation.
were all properly professionally.
groomed while some Almost all didn’t
groomed. They all However, some of
were overdressed. Some bother to dress for
dressed to impress. them looked
dressed professionally. their dream job.
unprepared.
Points: 18 points 15 points 12 points 10 points
The proponents
The proponents used an
The proponents used The proponents tried used
Presentation Quality

appropriate slides for a

the most appropriate to use the appropriate inappropriate
formal business
slides for a formal slides for a formal slides for a formal
presentation. Almost all
business business presentation. presentation. They
Slides and

of the elements of a good

presentation. They They tried to didn’t incorporate
presentation were
followed carefully the incorporate some of the elements of a
evident in their
elements of a good the elements of a good good presentation.
presentation. The texts
presentation. The presentation. They Their texts were
were somewhat readable
texts were readable had a tolerable errors unreadable. Their
and almost all of the
and their choices of in choosing choose striking
colors and styles they
colors and styles appropriate text, colors and choose
used were
were commendable. colors and styles. a free style
commendable.
presentation.
Points: 10 points 8 points 6 points 4 points
The proponents
The proponents
The proponents The proponents almost had an overtime/
Time-Bounded

almost consumed
strictly followed the followed the under time in
more than/ less than
timeframe/duration timeframe/duration of presenting their
the allowable time
of the presentation the presentation given investigative
during the
given to them. They to them. They somehow business plan.
presentation. They
provided an ample provided an ample They didn’t
tried to provide an
moment for the moment for the critique provide/ provide
ample moment for the
critique to throw to throw questions. too much time for
critique to raise
questions. They They somehow ensure the critique to
questions. They tried
ensure their their arguments and raise questions.
to provide their
arguments and responses were all They didn’t have/
responses before the
responses were time- delivered in a timely had too much time
end of their
bounded. manner. for their responses
presentation.
and arguments.
Points: 5 points 3 points 2 points 1 point

BMTH2: Mathematics of Investment (Syllabus) Page 4 of 7

 Mathematics of Investment Archive Grading Rubric
(The Preliminary and Midterm Project in Mathematics of Investment)

VI. GRADING SYSTEM

Prelim Term (30%)

1. Long Quiz/ Chapter Quiz…………………………...………………………………………..20%
2. Assignments and Exercises……………….…………………………………..…….………..20%
3. Problem Set…………...…….……….……………...………………………………………..10%
4. Attendance, Class Participation, and Behavior…...……...…………………………………..10%
5. Project(Archive of Mathematics of Investment lessons)………………………..………...10%
6. Written Examination……...……..…………………………………………………………...30%
Midterm (30%)
1. Long Quiz/ Chapter Quiz…………………………...………………………………………..20%
2. Assignments and Exercises……………….…………………………………..…….………..20%
3. Problem Set…………...…….……….……………...………………………………………..10%
4. Attendance, Class Participation, and Behavior…...……...…………………………………..10%
5. Project(Archive of Mathematics of Investment lessons)………………………..………...10%
6. Written Examination……...……..…………………………………………………………...30%

End Term (40%)

1. Long Quiz/ Chapter Quiz…………...…….………...………………………………………..20%
2. Assignments and Exercises……………….…………………………………..…….………..20%
3. Attendance, Class Participation, and Behavior…...……...…………………………………..10%
4. Capstone Project………………………………………………...…………………..………..20%
5. Written Examination……...……..…………………………………………………………...30%

BMTH2: Mathematics of Investment (Syllabus) Page 5 of 7

 VII. LEARNING PLAN

Time Pedagogical and Andragogical Tools

Frame Content/Topics/Inputs (Approaches, Methodologies, Strategies,
Techniques)
1 Part 1: Basic Concepts in Mathematics  Gospel reading
 Getting-to-know Activity
1.
The Decimal Number System  Setting of Expectation
2.
Rules in Rounding Off Numbers  Orientation about the Course
3.
The Order of Operations  Lectures
4.
The Arithmetic Series and Arithmetic  Demonstration
Sequence  Board work
2-4 Part 2: Simple Interest  Exercises
 Assignments
1. The Concept of Simple Interest  Quizzes
2. The Accumulated Value and Present  Problem Set
Value
3. Exact and Ordinary Interests
4. Time Between Two Dates
5. Simple Discount
6. Promissory Notes
5 Part 3: Compound Interest
1. The Concept of Compound Interest
2. Finding the Compound Amount and
Interest
3. Finding the Present Value at
Compound Interest

6 Preliminary Examination  Written Examination by Set

7-10 4. Compound Amount at a Fraction of a  Gospel reading
Period  Lectures
5. Present Value at a Fraction of a  Demonstration
Period  Board work
6. Finding the Interest Rate  Exercises
7. Finding the Time  Assignments
8. Nominal Rate and Effective Rate  Quizzes
9. Continuous Compounding of Interest  Problem Set

Part 4: Annuity Terms

1. Amount of an Ordinary Annuity
2. Present Value of an Ordinary Annuity
3. Periodic Payment of an Ordinary
Annuity
4. Interest Rate of an Ordinary Annuity
5. Term of an Ordinary Annuity

BMTH2: Mathematics of Investment (Syllabus) Page 6 of 7

 6. Amount and Present Value of an
Annuity Due
7. Deferred Annuities
8. Perpetuities
11 Part 5: General Annuities
1. Compound Interest for Fractional
Parts of Conversion Periods
2. Equivalent Rates
12 Midterm Examination  Written Examination
13-15 3. Device for Computations  Gospel reading
4. General Case: Reduction Procedures  Lectures
5. General Case: Formulas  Demonstration
 Board work
Part 6: Amortization and Sinking Fund  Exercises
1. Amortization – Definition of Terms  Assignments
2. Amortization of a Debt  Quizzes
3. The Amortization Schedule  Problem Set
4. Finding the Outstanding Principal
a. Prospective Method
b. Retrospective Method
5. Amortization with an Irregular Final
Payment
6. Sinking Fund – Definition of Terms
7. The Sinking Fund Schedule
16-17 Part 7: Bonds
1. Definition of Bonds
2. Valuation of Bonds
3. Redemption Value and Coupon
Payment
4. General Method
5. The Premium Method
6. Discount Method
7. Current Yields
17 Presentation of Capstone Project  Individual Capstone Project
18 Final Examination  Written Examination

VIII. REFERENCES
1. Bolanos, A. B., Esller, B. H., Kennedy, R. O., Mendoza, V. C., Partible, M.F. G., &Zorilla, R. S.
(2008). Business and investment mathematics. Metro Manila: Grandwater
Publication.
2. Hart, W. L. 1975. Mathematics of investment. Massachusetts: D.C. Heath and Company.

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