Course detail

Financial and Insurance Mathematics

FP-MfpmKAcad. year: 2020/2021

This course is a cross-section of modern methods and principals of financial and selected insurance calculations as they are applied in financial and insurance practice: types of interest rates, savings, systems of financial flows, investment rules, income, shares, bonds, debt amortization, financial risk, portfolio theory, basic insurance principles.

Learning outcomes of the course unit

After completing the course, students will be able to understand the principles and function of the financial decision-making and to use acquired knowledge and skills for modeling of financial and insurance phenomena and solving of basic problems in these areas by means of engineering mathematics. The subject isaimed at supporting financial literacy.


Basic courses university mathematics: percentages, adjustment of expressions, solving equations, inequations, and their systems, functions (basic terms, properties and graphs of elementary functions), sequences and series (especially arithmetic and geometric), averages. The basic use of mathematical software for computations, visualizations, simulations and modeling of financial phenomena. Orientation in selected categories in the economic environment.


Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

CIPRA, T.: Praktický průvodce finanční a pojistnou matematikou. Vyd. III. Praha: Ekopress. 308 s. 2015. ISBN: 978-80-87865-18-7. (CS)
RADOVÁ, J. a kol. Finanční matematika pro každého, příklady + CD-ROM. 2. přepracované vydání.Praha: Grada publishing, a.s. 256 s. 2011. ISBN978-80-247-3584-9. (CS)
RADOVÁ, J., DVOŘÁK, P. and MÁLEK, J.. Finanční matematika pro každého. 8. rozšířené vydání. Praha: Grada Publishing, a.s. 304 s. 2013. ISBN:078-80-247-4831-3. (CS)
MACHÁČEK, O. Finanční a pojistná matematika: úrok a úročení, modely opakovaných plateb, burzovní operace při složeném úročení, pojistné operace. 2.vydání, Praha: Prospektrum. 213 s. 3001. ISBN 80-7175-104-9. (CS)
KARATSAZ., I. and SHREVE, S.E. Methods of Mathematical Finance. 2. vydání. Springer. 1999. ISBN-13: 978-0387948393. (CS)
Bohanesová, E. 2006. Finanční matematika 1. Vyd. 1. Univerzita Palackého v Olomouci Přírodovědecká fakulta, 118 s. ISBN 80-244-1294-2. (CS)

Planned learning activities and teaching methods

The course contains lectures that explain basic principles, problems and methodology of this discipline. There are solved typical examples and tasks.

Assesment methods and criteria linked to learning outcomes

To obtain the course-unit credit (classified credit) it is required: processing assigned tasks, semester project and successful completion of a credit test (evaluation A to E), as the case may be added to which with a short oral part.
The course-unit credit (classified credit) demonstrates knowledge of taught topics and its practical application. Classification methods depend on the BUT Rules for Studies and Examinations using the ECTS grading scale.

Language of instruction


Work placements

Not applicable.

Course curriculum

Fundamentals of mathematical methods aimed to discipline - brief summary
Time value of money; Investment decision-making
Loans; Installment plan
Portfolio theory
Future contracts; Speculation in securities; Currency rates
Applications, practice


The aim of the course is to acquaint students with the basic concepts and relations in the field of modern finance in the application of mathematical methods, applications in the real examples and other practical knowledge.

Specification of controlled education, way of implementation and compensation for absences

Participation in consultations is recommended.

Classification of course in study plans

  • Programme BAK-MIn-KS Bachelor's

    branch BAK-MIn-KS , 2. year of study, winter semester, 4 credits, compulsory-optional

Type of course unit


Guided consultation in combined form of studies

16 hours, optionally

Teacher / Lecturer