Financial Mathematics - MACT4012

Looking for a different module?

Module delivery information

Location Term Level1 Credits (ECTS)2 Current Convenor3 2024 to 2025
Spring Term 4 15 (7.5) Mark Heller checkmark-circle


The aim of this module is to provide a grounding in the principles of modelling as applied to financial mathematics – focusing particularly on deterministic models which can be used to model and value known cashflows. Indicative topics covered by the module include data and basics of modelling, theory of interest rates, equation of value and its applications. This module will cover a number of syllabus items set out in Subject CM1 – Actuarial Mathematics published by the Institute and Faculty of Actuaries.


Contact hours

Total contact hours: 48
Private study hours:102
Total study hours: 150

Method of assessment

70% examination, 30% coursework

Indicative reading

Students on the programmes listed in section 7 are provided with the study notes published by the Actuarial Education Company for Subject CM1 – Actuarial Mathematics.
The following may be used for background reading:
Adams, A. T., et al, Investment mathematics (Wiley 2003)
McCutcheon, J. J., Scott, W. F., An introduction to the Mathematics of Finance (Institute of actuaries, Faculty of Actuaries in Scotland 1986)
Garrett S, An introduction to the Mathematics of Finance; a deterministic approach 2nd edition (Institute and faculty of Actuaries 2013)

Learning outcomes

The intended subject specific learning outcomes.
On successfully completing the module students will be able to:
1. describe, interpret and discuss the theories on interest rates;
2. demonstrate the capability to deploy established approaches accurately to analyse and solve problems using a basic level of skill in calculation and manipulation of interest rate theories and using models to value cashflows;
3. demonstrate a basic appreciation of recent developments in financial mathematics and the links between the theory of financial mathematics and their practical application.

The intended generic learning outcomes.
On successfully completing the module students will be able to:
1. apply a logical mathematical approach to solving problems;
2. demonstrate skills in written communication;
3. demonstrate skills in the use of relevant information technology;
4. demonstrate skills in time management, organisation and studying.


  1. Credit level 4. Certificate level module usually taken in the first stage of an undergraduate degree.
  2. ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
  3. The named convenor is the convenor for the current academic session.
Back to top

University of Kent makes every effort to ensure that module information is accurate for the relevant academic session and to provide educational services as described. However, courses, services and other matters may be subject to change. Please read our full disclaimer.