Math for Finance
Master financial mathematics: apply key mathematical techniques for improved financial decision-making
$99.00
Lifetime access
What you get:
- 4 hours of content
- 60 Interactive exercises
- 84 Downloadable resources
- World-class instructor
- Closed captions
- Q&A support
- Future course updates
- Course exam
- Certificate of achievement
Math for Finance
$99.00
Lifetime access
What you get:
- 4 hours of content
- 60 Interactive exercises
- 84 Downloadable resources
- World-class instructor
- Closed captions
- Q&A support
- Future course updates
- Course exam
- Certificate of achievement
$99.00
Lifetime access
What you get:
- 4 hours of content
- 60 Interactive exercises
- 84 Downloadable resources
- World-class instructor
- Closed captions
- Q&A support
- Future course updates
- Course exam
- Certificate of achievement
What You Learn
- Master the key principle of the time value of money – a foundational principle that impacts all financial decision-making
- Explore the fundamental components that determine bank interest rates
- Compare present and future cash flows to make informed financial decisions
- Calculate investment returns and decide which investment opportunities are preferrable
- Use advanced tools such as Net Present Value (NPV) and Internal Rate of Return (IRR) to assess project financial feasibility
- Lay a solid foundation in financial math to seamlessly progress to more advanced finance topics and applications
Top Choice of Leading Companies Worldwide
Industry leaders and professionals globally rely on this top-rated course to enhance their skills.
Course Description
Math is a critical skill for any successful financial analyst. Much of the work entails evaluating capital projects and selecting investments. To carry out these tasks accurately, you must understand the mathematics behind time value of money problems. In this Math for Finance course, you will learn critical mathematical concepts required for a career in financial analysis, corporate finance, investment banking, risk management, private equity, financial planning and analysis, and many more. You will learn about the time value of money and why money is more valuable today than tomorrow. We also introduce the concept of interest rates and examine the premiums that compensate investors for bearing risk. By the end of the financial mathematics course, you will know how to solve time value of money problems in Excel for different frequencies of compounding. You will also learn to calculate and interpret the future and the present value of a single sum of money, an ordinary or annuity due, perpetuity, and a series of unequal cash flows. We explain the differences between the effective and annual interest rates, the importance of compounding frequency, and how it affects the future and the present value of our investments. Next, the finance mathematics course covers two of the most common metrics for estimating capital budgeting projects’ profitability: the Net Present Value (NPV) and the Internal Rate of Return (IRR). We contrast the two measures and identify problems associated with the IRR rule. Then, we introduce the most common investment and portfolio return measures: the Holding Period Return and the Money-Weighted and Time-Weighted Rate of Return. Our Math for Finance course also touches on several fixed income investment topics, such as bond valuation and yields. You will learn how to calculate the most common yield measures—current yield and yield to maturity. We also introduce the most important Excel functions that you need to calculate them. Lastly, we examine the different money market instruments and their specific yield measures, such as the money market, effective annual, and bond equivalent yields. Math for Finance is the must-have course for anyone looking to excel in finance. It covers key mathematical concepts and their real-world applications, equipping you with the knowledge to understand financial markets and make informed investment decisions. Whether you're a student or a seasoned professional, this course will give you a competitive edge. Enroll today and master the math behind financial markets.
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1.1 Course Introduction
3 min
1.2 Time Value of Money (Key Concepts)
5 min
1.3 The Timeline
3 min
1.4 Interest Rate (Interpretations)
3 min
1.5 Interest Rate (Components)
5 min
1.6 The Effective Annual Rate (EAR)
3 min
Interactive Exercises
Practice what you've learned with coding tasks, flashcards, fill in the blanks, multiple choice, and other fun exercises.
Practice what you've learned with coding tasks, flashcards, fill in the blanks, multiple choice, and other fun exercises.
Curriculum
- 1. The Time Value of Money6 Lessons 22 Min
In the introductory section, we discuss the time value of money and the core principle of finance—money today is more valuable than money tomorrow. You will learn how to interpret interest rates and decompose them as the sum of a real risk-free rate and different risk premiums. Finally, we calculate the effective annual rate (EAR) by incorporating the effects of compounding.
Course Introduction3 minTime Value of Money (Key Concepts)5 minThe Timeline3 minInterest Rate (Interpretations)3 minInterest Rate (Components)5 minThe Effective Annual Rate (EAR)3 min - 2. Moving Money Through Time8 Lessons 38 Min
In this section of the financial mathematics course, we examine the relationship between present and future value and learn how to move money through time. We discuss the importance of compounding frequency, how it affects the present and future value of our investments, and the different types of cash flow streams. Lastly, you will learn how to calculate the future and the present value of ordinary and annuity due and unequal cash flows.
The Relationship Between PV and FV4 minMoving Money Through Time5 minThe Effect Of Compounding Frequency3 minOrdinary Annuity9 minAnnuity Due6 minPerpetuity3 minGrowing Perpetuity3 minFV and PV Of Unequal Cash Flows5 min - 3. Modeling and Solving Time Value of Money Problems4 Lessons 20 Min
In this core section of the Math for Finance course, you will learn to model and solve time value of money problems. We show you how to obtain the size of annuity payments manually and in Excel. You will learn how to calculate the number of years it takes to reach your financial goal and find investments' growth rates. At the end of this section, we examine the cash flow additivity principle.
Solving for the Size of Annuity Payments8 minCalculate the Number of Years It Takes to Reach Your Financial Goal4 minWhat Is The Rate Of Return On My Investment5 minThe Cash Flow Additivity Principle3 min - 4. NPV and IRR4 Lessons 33 Min
Having covered interest rates, we can discuss several discounted cash flow applications. In this practical section, we introduce the Net Present Value and Internal Rate of Return techniques. They help us determine whether a project is feasible and advantageous from a financial perspective. Finally, you will learn how to choose the most profitable project when the two measures produce conflicting results.
Net Present Value (NPV)5 minNet Present Value (Calculation)10 minInternal Rate of Return (IRR)9 minNPV vs IRR9 min - 5. Return Measures5 Lessons 26 Min
This section of the finance mathematics course is dedicated to the different return measures. First, we examine the holding period yield, the logarithmic return, and the differences between them. Then, we explore the two most common portfolio return measurements: the Money-Weighted Rate of Return and the Time-Weighted Rate of Return.
The holding period return4 minLog Return7 minArithmetic vs Geometric Mean Return3 minMoney-weighted rate of return7 minTime-weighted rate of return5 min - 6. Bond Pricing and Yields7 Lessons 41 Min
In the final section of the Math for Finance course, we discuss bond pricing and yields. You will learn how to calculate yield measures, such as current yield and yield to maturity, and determine whether a bond trades at a discount, par, or premium. At the end of this section, we examine the short-term debt market. You will learn how to calculate different money market yields, such as the bank discount, effective annual, and money market yields.
Introduction6 minPar Value4 minValuing a Bond6 minBond Yield8 minBank Discount Yield5 minMoney Market Instruments (Yield Measures)6 minYield Measures (Conversion)6 min
Topics
Course Requirements
- A basic knowledge of high school math is necessary to follow along with the course
Who Should Take This Course?
Level of difficulty: Beginner
- Aspiring finance professionals
- Individuals seeking to enhance their financial math skills
Exams and Certification
A 365 Financial Analyst Course Certificate is an excellent addition to your LinkedIn profile—demonstrating your expertise and willingness to go the extra mile to accomplish your goals.
Meet Your Instructor
Nedko earned a Master’s degree in Finance from Bocconi University (Milan, Italy) in 2012. Then, he gained valuable working experience with exciting firms like PwC Italy (Financial Advisory and M&A), Coca-Cola European Partners (Financial Analyst), and Infineon Technologies (M&A). In 2014, he published his first online course on financial modeling and valuation when he realized that creating educational materials is his true calling. The amazing students and content creators in the data science community, the 365 team, and the strong desire to build the perfect learning platform drive Nedko to continue on this exciting journey. His goal is to establish 365 Data Science as the learning platform that bridges the gap between theoretical knowledge and practical business application.
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