The interplay between basic concepts of Economics and Finance. Simple and compound interest, with applications to continuous interest, annuities and perpetuities, loan and mortgage payments, sinking funds, bonds, capitalization and depreciation. Topics include the calculation of net present values, basic asset pricing, evaluation of risk and return, capital budgeting, and financial derivatives. Emphasis on practical problems with economic applications.
The interplay between basic concepts of Economics and Finance. Simple and compound interest, with applications to continuous interest, annuities and perpetuities, loan and mortgage payments, sinking funds, bonds, capitalization and depreciation. Topics include the calculation of net present values, basic asset pricing, evaluation of risk and return, capital budgeting, and financial derivatives. Emphasis on practical problems with economic applications.
