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Center for Curriculum and Transfer Articulation
Introduction to Actuarial Science: Elements and Techniques
Course: MAT222

First Term: 2020 Summer
 Lecture   3.0 Credit(s)   3.0 Period(s)   3.0 Load  
Subject Type: Academic
Load Formula: S- Standard


Description: An introduction to the mathematics of actuarial science. Exploration of actuarial science as a profession, including but not limited to mathematical skills applied for problem-solving and technologies used in risk management and financial modeling.



MCCCD Official Course Competencies
1. Identify and describe the skills, specialized mathematical knowledge, and role of an actuarial scientist. (I)
2. Identify the educational path and requirements of the exam process. (I)
3. Describe and explain the structure of the financial system. (II)
4. Identify and describe the types and roles of financial institutions, including but not limited to banks, insurance companies, pension funds, financial instruments (bills, bonds, shares) and financial markets. (II, III)
5. Use basic tools and vocabulary for financial modeling and interest theory, including risk management. (II-IV)
6. Apply mathematical concepts of interest theory in the valuation of a variety of financial instruments. (III)
7. Utilize appropriate technologies for calculations and simulations (e.g., spreadsheets, appropriate financial calculator). (III, IV)
8. Use the problem solving process to solve problems related to financial modeling and actuarial science. (IV)
MCCCD Official Course Competencies must be coordinated with the content outline so that each major point in the outline serves one or more competencies. MCCCD faculty retains authority in determining the pedagogical approach, methodology, content sequencing, and assessment metrics for student work. Please see individual course syllabi for additional information, including specific course requirements.
 
MCCCD Official Course Outline
I. The Professional Actuary
   A. Role of an actuarial scientist
   B. Jobs and employers of actuarial scientists
   C. Educational pathways
   D. Exam pathway to actuarial society membership
II. Overview of Risk Management and the Financial System
   A. Banks
   B. Insurance
   C. Pension funds
   D. Financial instruments
      1. Bills
      2. Bonds
      3. Shares
   E. Financial markets
III. Interest Theory and Financial Models
   A. Time value of money
      1. Time value of money terminology
         a. Net present value
         b. Other
      2. Time value equations
   B. Annuities
      1. Types of annuities
      2. Annuity calculations (present and future value)
   C. Loans
      1. Simple interest and discount
      2. Compound interest and discount
      3. Rule of 78
      4. Amortization
      5. Sinking funds
      6. Refinancing
   D. Bonds
      1. Tax on bonds
      2. Other
   E. General cash flows and portfolios
      1. Dollar-weighted and time-weighted rate of return
      2. Duration and modified duration
      3. Stock pricing and dividends
      4. Capitalized cost
   F. Immunization
      1. Cash flow matching
      2. Other
IV. Elements of Problem Solving and Financial Modeling
   A. Identification and analysis of the problem/simulation
   B. Use of appropriate terminology
   C. Application of appropriate technologies
      1. Spreadsheets
      2. Calculator
   D. Justification of process and solution
   E. Written and verbal communication of process and solution


 
MCCCD Governing Board Approval Date: November 22, 2016

All information published is subject to change without notice. Every effort has been made to ensure the accuracy of information presented, but based on the dynamic nature of the curricular process, course and program information is subject to change in order to reflect the most current information available.