last edited: 10/17 7:25am
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Send me an e-mail if you have any questions.
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<h1> Math 365 - Financial Mathematics for Actuaries</h1>
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Class: MWF 11:00AM - 11:50AM in Biological Sciences 120 (8/24-12/9/2026),
Instructor:
<a href="http://userpages.umbc.edu/~sousedik/">Bedrich Sousedik</a>

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Course description:
This course is an introduction to the mathematics of interest and the evaluation of interest related products including annuities with non-contingent payments, loans, bonds, general cash flows, portfolios, and immunization. Additional topics discussed include sources of interest rates, stochastic interest rates, and financial instruments such as shorts, swaps, and options. This material includes most of the learning objectives for the Financial Mathematics Exam (called Exam FM by the Society of Actuaries and Exam 2 by the Casualty Actuarial Society.)  Also, students not necessarily interested in taking the actuarial exam are encouraged to take this course as an upper-level elective.
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Prerequisite: Math 152 with a grade of C or better before you can enroll in this class.
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<!--The detailed class syllabus (pdf) is <a href="365f26-syllabus.pdf">here</a>.
However, look below to see the actual progress of the class.
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<b>8/24-28</b> M: Introduction, W: Outline 1 (interest rate, AV), W: Outline 1, Outline 2 (discount rate, PV).
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<b>8/31-9/4</b> M: Outline 2, W: Outline 3 (force of interest), F: Outline 3 (annuity-immediate).
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<b>9/7-11</b> M: Labor Day (no class), W: Outline 4 (annuity-immediate, annuity-due), F: Outline 4 (examples), Hw 1, 2 due by 11am. 
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<b>9/14-18</b> M: no usual class, but you are invited to <a href="https://mathstat.umbc.edu/events/event/156005/">DE seminar</a>, W: Outline 5 (continuous annuities), F: Outline 5 (examples), Hw 3 due 9/25 by 11am. 
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<b>9/21-25</b> M:, Outline 6 (linear interpolation, increasing annuity- and perpetuity-immediate), W: Outline 6 (increasing annuity- and perpetuity-due, examples), F: Outline 7 (Decreasing annuities, exercise).
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<b>9/28-10/2</b> M: Outline 7 (examples), Outline 8 (continuosly variable annuities, perpetuity), W: Outline 8 (compound increasing annuities, examples), F: Exam 1 (Ch 1 and 2, Hw 1-3), Hw 4 due 10/9 by 11am.
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<b>10/5-9</b> M: Outline 9 (continuously varying payment streams), W: Outline 9 (examples), F: no usual class, buy you are invited to <a href="https://mathstat.umbc.edu/events/event/154447/">Statistics colloquium</a>, Hw 5 due 10/16 by 11am. 
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<b>10/12-16</b> M: Fall Recess (no class), W: Outline 10 (nonannual rates), F: Outline 10 (examples).
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<b>10/19-23</b> M: Outline 11 (nonannual annuities), W: Outline 11 (examples), F: Outline 12 (increasing p-thly annuities), Hw 6 due 11/2 by 11am.
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<b>10/26-30</b> M: Outline 12 (examples), W: Outline 13 (discounted cash flows) , F:
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<b>11/2-6</b> M: , W: , F: Exam 2 (Ch 3 and 4, Hw 4-6). 
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<b>11/9-13</b>
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<b>11/16-20</b>
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<b>11/23-27</b> M: Outline ... , W and F: Thanksgiving (no class). 
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<b>11/30-12/4</b>
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<b>12/7-9</b>
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<b>12/11, 10:30-12:30 Final</b>