Stat 274: Theory of Interest

Winter 2026
TuTh 12:30-1:45 pm
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

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, January 29th on Learning Suite at 12:30 pm
Assignment 2 - Due Thursday, February 5th on Learning Suite at 12:30 pm
Assignment 3 - Due Thursday, February 12th on Learning Suite at 12:30 pm
Assignment 4 - Due Thursday, February 19th on Learning Suite at 12:30 pm
Assignment 5 - Due Tuesday, March 3rd on Learning Suite at 12:30 pm
Assignment 6 - Due Thursday, March 19th on Learning Suite at 12:30 pm
Assignment 7 - Due Thursday, April 2nd on Learning Suite at 12:30 pm
Assignment 8 - Due Tuesday, April 14th on Learning Suite 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.