Course Description
This course is an introduction to the uses of college level mathematics in personal finance applications. Similar to Math 103 in its target audience, this course is intended for students not majoring in the mathematical or natural sciences. The subject matter is more focused than in 103, and is highly applicable. Topics include simple interest, simple discount, compound interest, annuities, investments, retirement plans, mortgages, student loans, leasing, inflation, and insurance. Some biological analogies and applications are considered throughout the course. The course is designed so that reinforcement of basic skills is integrated into the learning of the subject matter. The emphasis is on problem solving, with some derivation of formulas and consideration of why the formulas make sense. You will never wonder, “what is this kind of math actually good for in real life?”
Textbooks
Textbook: For current textbook please refer to our Master Textbook List page
Syllabus
The following list of topics, classes, and exams is approximate. The actual topics and exam dates are determined by each instructor. See the instructor of a specific section for details.
| Class | Topic | Chapter |
| 1 | Simple interest, time value of money, term of a loan | 1.1, 1.2 |
| 2 | Relationship among principal, interest rate, and time | 1.3 |
| 3 | Simple discount | 2.1 |
| 4 | Simple discount contrasted with simple interest | 2.2 |
| 5 | Compound interest | 3.1 |
| 6 | Compounding frequencies | 3.2 |
| 7 | Effective interest rates | 3.3 |
| 8 | Effective vs Nominal interest rates | 3.4 |
| 9 | Solving for Time and Rate | |
| 10 | Solving for Time and Rate | |
| 11 | Catch up and review | |
| 12 | EXAM #1 (date is approximate - ask your instructor for the actual exam date) | |
| 13 | Definition and characteristics of annuities | 4.1 |
| 14 | Future values of annuities; Derive formula for Sn|i | 4.2 |
| 15 | Future values of annuities; Applications of Sn|i | 4.2 |
| 16 | Sinking funds | 4.3 |
| 17 | Present values of annuities | 4.4 |
| 18 | Present value of annuities | 4.4 |
| 19 | Amortization tables | 4.5 |
| 20 | Refinancing and Consolidations | 4.5 |
| 21 | Student loans | |
| 22 | EXAM #2 (date is approximate - ask your instructor for the actual exam date) | |
| 23 | Assessing effects of inflation | 8.3 |
| 24 | Inflation continued | 8.3 |
| 25 | Leasing | 11.3 |
| 26 | Leasing / Insurance | 11.3 |
| 27 | Insurance (or EXAM #3, in sections that have three midterms) | |
| 28 | Catch up and review | |
| FINAL EXAM (at a time and location determined by the university's final exam schedule) |
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SAS Core Curriculum Learning Goals
Math 106 fulfills both the Quantitative Information (QQ) and Mathematical or Formal Reasoning (QR) learning goals of the SAS Core Curriculum:
QQ: Formulate, evaluate, and communicate conclusions and inferences from quantitative information.
QR: Apply effective and efficient mathematical or other formal processes to reason and to solve problems.
Additional Information
This course may not be used as an elective for the math major or minor. It is not intended for students majoring in business, economics, or STEM fields. Rutgers Business School will not give its students credit for taking this course.
