Course ID 17СА51
  • Finance and Banking
Number of classes 3+2
Semester 6
Status Optional
Course objective is to enable students to acquire basic knowledge in financial and actuarial mathematics as a pre-requisite for solving specific business tasks in the field of quantitative analysis and insurance. Course objective is also the mastering the method of calculating simple and complex interest, mastering the procedures of depreciation and loan conversion, as well as understanding the problem of insurance business and calculating insurance tariffs. A special emphasis will be placed on the problem of forming an insurance premium and estimating the size of mathematical reserves.
After mastering the content of this course, students will be able to:
• define the basic concepts of financial and actuarial mathematics;
• apply the appropriate method of calculating simple and complex interest;
• develop a depreciation plan and define the steps in the loan repayment procedure;
• interpret results;
• use mortality tables in the interest rate calculation;
• calculate net and gross premium reserves,
• make conclusions about the calculation results.
Theoretical training
• Percentage account.
• Simple interest account (interest on multiple amounts, average payment period, discounting).
• Complex interest account (accumulation factor, discount factor, compound factor, actualization factor).
• Loan depreciation.
• Loan conversion.
• Actuarial bases of insurance (Law of large numbers, probability account).
• Life insurance (mortality tables, face protection, probable and average life span).
• Tariff calculation for rent insurance.
• Tariffs calculation for capital insurance.
• Mathematical reserves (net and gross methods of calculating mathematical reserves).
Practical training
• Preparation of tasks related to the topics listed in the theoretical training;
• Case studies from practice.
Кочовић Ј., Рајић, В., & Митрашевић, М. (2016). Актуарска математика. Београд: ЦИД Економски факултет, Београд.

Филиповић, Л., & Папић-Благојевић, Н. (2013). Квантитативне методе. Нови Сад: Алфа-граф НС.

Кочовић Ј., & Павловић М. (2015). Увод у финансијску математику. Београд: ЦИД Економски факултет, Београд.
Assessment (maximum number of points 100)
Exam Requirements 55 points Final exam 45 points
Attendance 5 Written exam 45
Ongoing assessment 30 Oral exam  
Class participation 10  
Practice: 10    

Practice classes