Subject: Commercial and Financial Calculus

Scientific Area:

Finance, Banking & Insurance

64 Hours

Number of ECTS:

5 ECTS

Language:

Portuguese

Overall objectives:

1 - Provide students with knowledge that follows the practice of procedures and techniques inherent in financial calculation, namely capitalization and capital equivalence regimes, rents, the amortization of classic and bond classics and the evaluation of investments in real assets.

Syllabus:

1 - Fundamental concepts
1.1 - Income application
1.2 - Capital, time and interest
1.3 - Interest and interest rate
1.4 - Capitalization schemes
1.5 - Different interest rate concepts
2 - Equivalence of capital
2.1 - Capitalization and discount
2.2 - Capitalization on simple interest
2.3 - Capitalization on compound interest
2.4 - Discount in simple interest
2.5 - Discount in compound interest
3 - Annuities
3.1 - Concept and characterization
3.2 - Classification of annuities
3.3 - Temporary annuities
3.4 - Perpetual annuities
4. - Classical loans
4.1 - General principles and definitions
4.2 - Loan amortization modalities: French System, Constant Amortization System and American System
5 - Bond loans
5.1 - General principles and definitions
5.2 - Bond amortization modalities
6 - Basics of investment appraisal
6.1 - Introduction
6.2 - Valuation of investments in real assets

Literature/Sources:

Matias, R. , 2009 , Cálculo Financeiro - Teoria e Prática , Escolar Editora
Alves, M. , 1999 , Cálculo Financeiro , Edições Sílabo

Assesssment methods and criteria:

Classification Type: Quantitativa (0-20)

Evaluation Methodology:
The assessment model adopted is Assessment Model A (see the Regulation for the Assessment of Student Learning at the University of Madeira). In the normal season, knowledge assessment is composed of two individual written tests with a weighting of 50% each. In both frequencies, the minimum grade criterion (7.5 points) is applicable. At the time of appeal, the knowledge assessment consists of an individual written test with a weighting of 100% of the final grade.