The aim of the Fundamentals of Financial Mathematics course is to enable students to understand the mathematical methods and techniques used in financial decision-making processes. This course focuses on core topics such as the time value of money, interest calculations, annuities, bond and stock valuation, helping students gain the ability to calculate and compare the value of financial instruments. Additionally, it aims to develop analytical thinking skills through mathematical approaches used in the evaluation of investment projects.

This course covers the essential mathematical principles underlying financial operations. It begins with the basic concepts of financial mathematics and the time value of money. Students then explore simple and compound interest calculations, as well as the present and future value of annuities. Topics such as perpetuities, variable annuities, nominal vs. effective interest rates, and cash flow representation on a time axis follow. In the second half of the course, valuation methods for financial instruments such as bonds and stocks are examined. Key investment appraisal methods—including Net Present Value (NPV), Internal Rate of Return (IRR), payback period, and profitability index—are used to evaluate investment projects. The course also addresses the impact of inflation on financial calculations and concludes with a comprehensive review and practical problem-solving session.