Stat 274: Theory of Interest

Fall 2026
TuTh 12:30-1:45 pm
1161 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

Lecture 1 - The growth of money - Annotated
Lecture 2 - Equations of value and yield rates - Annotated
Lecture 3 - Annuities - Annotated
Lecture 4 - Loan Repayment - Annotated
Lecture 5 - Bonds - Annotated
Lecture 6 - Term Structure and Interest Rate Sensitivity - Annotated

Homework

Assignment 1 - Due Thursday, September 17th on Canvas at 12:30 pm
Assignment 2 - Due Thursday, September 24th on Canvas at 12:30 pm
Assignment 3 - Due Thursday, October 1st on Canvas at 12:30 pm
Assignment 4 - Due Tuesday, October 6th on Canvas at 12:30 pm
Assignment 5 - Due Thursday, October 15th on Canvas at 12:30 pm
Assignment 6 - Due Thursday, November 5th on Canvas at 12:30 pm
Assignment 7 - Due Thursday, November 19th on Canvas at 12:30 pm
Assignment 8 - Due Thursday, December 10th on Canvas at 12:30 pm

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.