Stat 274: Theory of Interest

Fall 2025
TuTh 9:30-10:45 am
1159 WVB
Syllabus
Announcements

In this course we focus on how money grows over time and how to use that information to optimize both corporate and personal finances. This class qualifies for exam FM credit through the SOA University Earned Credit Program.

Lecture Slides

Chapter 1 - The growth of money - Annotated
Chapter 2 - Equations of value and yield rates - Annotated
Chapter 3 - Annuities - Annotated
Chapter 5 - Loan Repayment - Annotated
Chapter 6 - Bonds - Annotated
Chapters 8 and 9 - Term Structure and Interest Rate Sensitivity - Annotated

Homework

Assignment 1 - Due Thursday, September 18th on Learning Suite at 9:30 am
Assignment 2 - Due Thursday, September 25th on Learning Suite at 9:30 am
Assignment 3 - Due Thursday, October 2nd on Learning Suite at 9:30 am
Assignment 4 - Due Thursday, October 9th on Learning Suite at 9:30 am
Assignment 5 - Due Tuesday, October 21st on Learning Suite at 9:30 am
Assignment 6 - Due Thursday, November 13th on Learning Suite at 9:30 am
Assignment 7 - Due Thursday, November 20th on Learning Suite at 9:30 am
Assignment 8 - Due Tuesday, December 9th on Learning Suite at 9:30 am

Exams

Practice Midterm: Problems - Solution
Practice Final: Problems - Solution

SOA Exam FM

Website
Practice Questions and Solutions
Notation
Online Sample Exam

Bonus Material

Helpful formula sheet
Personal Finance and Financial Independence
Behavioral Economics
Home Affordability Workbook
Financial Independence Workbook
Mortgage Calculator
Bond Amortization Workbook
Interest Rate Sensitivity Workbook

Acknowledgements

Thanks to Keith Freeland, Chris Groendyke, and Dave Hudak.