Actuarial Science I

3 Units

Practical knowledge of the theory of interest in both finite and continuous time. That knowledge should include how these concepts are used in the various annuity functions, and apply the concepts of present and accumulated value for various streams of cash flows as a basis for future use in: reserving, valuation, pricing, duration, asset/liability management, investment income, capital budgeting, and contingencies. Valuation of discrete and continuous streams of payments, including the case in which the interest conversion period differs from the payment period will be considered. Application of interest theory to amortization of lump sums, fixed income securities, depreciation, mortgages, etc., as well as annuity functions in a broad finance context will be covered. Topics covered include areas examined in the American Society of Actuaries Exam 2. Offered as STAT 317 and STAT 417 . Prereq: MATH 122 or MATH 126 or requisites not met permission.