Course
Financial Mathematics
Valuing dated payment streams, and choosing the criterion a funding decision actually requires.
Finishing this course means you have demonstrated the required skills with the level of support this course currently assesses.
- Modules
- 1
- Lessons
- 1
- Skills
- 2
- Starting here
- Assumes 1 prior topic
The route
Module 1: Discounting and appraisal
Present value of a dated stream, the annuity and perpetuity closed forms as a geometric sum and its limit, ranking projects by net present value at a stated rate, and the circumstances in which an internal rate of return fails to exist, fails to be unique, or ranks against net present value.
- Given a dated stream of cash flows and a discount rate, the learner can compute its present value, and can apply the annuity and perpetuity closed forms where the stream has their shape.
- Given competing projects, the learner can rank them by net present value at a stated rate, locate the rate at which a ranking reverses, and say when an internal rate of return is not unique or disagrees with net present value.
What finishing means
Finishing this course means you have demonstrated the required skills with the level of support this course currently assesses.
2 required skills. If you reach a lesson without the background it assumes, you are pointed at the prerequisite first, and returned here afterwards.
How progress is measured
Progress is inferred from evidence you produce, not from pages you have opened. Each required skill moves through states as evidence accumulates: met, practicing with help, performed unassisted, then performed again after a delay.
This course counts a skill as finished atguided. Where the system cannot admit evidence for a stronger claim — for instance when the only available scoring is your own judgment of your written answer — the skill stays at the state the evidence supports, and the reason is shown rather than hidden.