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Theory of Finance (TFN 111)
FACULTY OF SCIENCE AND AGRICULTURE
DEPARTMENT OF STATISTICS
(ALICE)
COURSE OUTLINE
YEAR: 2024
(1ST SEMESTER)
LECTURER: MR RT CHIRUKA
Copyright Reserved: rchiruka@ufh.ac.za

Welcome Statement
Welcome to Business Mathematics (TFN 111E), Alice Campus. I hope and trust that you shall
find this module interesting, meaningful and enriching in your academic life. It is important that
you adopt a positive attitude towards the course and work hard to ensure that you pass the
course. Do make sure that you are registered for this course.
Lecturer’s Contact Details
The course is offered under the auspices of the Department of Statistics, East London Campus.
My contact details are as follows;
 Name: Mr. R.T CHIRUKA
 Tel: 040-6022479
 Whatsapp : 0846156776
 E-mail: rchiruka@ufh.ac.za
Role Players
1. Lecturer
2. Tutors
3. Supplemental Instruction (SI) Leaders
Course Structure
This course consists of 16 credits. It is offered here on the Alice Campus to all Commerce
students.
Course Objectives
1. Solve given problems using critical and creative thinking.
2. Apply given notes to solve the given problems.
3. To provide the necessary background to quantitative techniques that will be used in

courses such as Accounting, Economics, Management, Finance, Auditing and Financial
Management that will subsequently lead to career opportunities as Actuarial Scientists,
Financial Managers, Accountants, Investment Analysts and others.
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Course Outline
Section A: Pure Mathematics (50%)
 Linear Programming
 Calculus
1. Basic rules (Including log and exponential functions not including trig functions)
2. Differentiation including Chain rule, Product rule and Quotient rule.
3. Applications of differentiation – Stationary points and their nature.
Section B: Financial Mathematics (50%)
 Simple Interest and its Application
 Compound Interest and its Application
 Nominal and Effective Interest Rates
 Annuities
Learning Outcomes
1st Topic: Linear Programming
By the end of this topic student should be able to:
 Set up a linear programming model or formulating constraints
 Graph the feasible region
 Use the feasible region and the objective function to maximize profits or minimize costs
2nd Topic: Differentiation
By the end of this topic students should be able to:
 Use the basic rules of differentiation
 Find stationary points and determine their nature
3rd Topic: Financial Mathematics
By the end of this topic students should be able to calculate:
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 Simple Interest and its Application
 Compound Interest and its Application
 Nominal and Effective Interest Rates
 Annuities
Formal Lectures
Lecturers are held during the D time slot.
Attending Lectures
 All lectures are compulsory

 This is very important as it is the time when you are going to hear some explanations of
the theory and examples in the module.
 Do not think that it is not necessary to attend lectures because you have the notes with
you.
 It is advisable to read these notes before and/or after each lecture.
 You have to be punctual
 Attendance registers will be circulated in each lecture and failure to attend will result in
deduction of marks from your final DP.
Tutorials
 There shall be tutorial sessions on Mondays and Fridays at 14:00 -16:00 in the statistics
block . Each student should select and attend one tutorial slot per week. Please stick to
your chosen tutorial slot. Venue staistics building unless otherwise..
 Tutorial sessions are compulsory and the contribute to your

final mark.
Structure of Tutorials
 The tutorial programme has been specifically designed to provide you with the
opportunity for practical application and reflection of learning.
 Tutorial questions are provided at the back of your module and additional ones shall be
provided during the course of the semester.
iv

 To obtain maximum benefit from the tutorials, you should attempt the tutorial questions
immediately when the content has been covered in lectures and certainly before each
tutorial session, so that at the tutorial itself, you can ask what you have been unable to
work out yourself.
 Solutions to tutorial questions shall be provided during tutorial sessions after completion
of each tutorial worksheet.
 Practicing tutorial questions is an essential part of the learning process and you will be
disadvantaging yourself if you fail to take this opportunity for self study seriously.
Consultation Time
There shall be time for consulting the lecturer on any issue regarding the course
Any time between 14:00 and 16:00.
Venue: Office
Assessment Criteria
1. Tutorial and plus class assignments
There will be four (4) tutorial tests written during the course and the best three (3) will
contribute 20% of the DP.
2. Assignments and class

Assignments will be given during the course of the semester. Attendance registers will be
marked during class and tutorials. Assignments and attendance will contribute 10% to the
Dp.
3. Major Tests:
 There shall be two major tests to be written during the course of the semester.
 Thus, one shall cover Pure Mathematics and one shall cover Financial Mathematics
 The two tests shall constitute 70% of the DP.
Class Tests Dates Content Venue Time
Class Test 1 Pure Mathematics To be

advised
Class Test 2 Financial Mathematics To be
advised
4. Final Examinations:
5. Only one 3 hour examination be written in June.
6. To those who will have to write a supplementary exam, they will have to do so in July or
August.
7. The exam shall be made up of two sections, Pure Mathematics (50%) and Financial
Mathematics (50%).
8. You shall not be allowed to sit for the final examination if your DP is less than 40%.
Supplementary Examination
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 You will be allowed to write the supplementary examination in July or August if:
 Your final mark is between 45% and 49% or;
 Your final mark is above 50% but your examination mark is below the 40%
subminimum.
 You will receive notification with your results whether you may write the supplementary
examination.
Aegrotat Examinations
 Aegrotat examinations are granted to students in special circumstances, such as illness or

a death in the family.
 Application forms for these examinations are available from the Exams Office.
 The form must be completed within one week after the date of the missed examination
and requires a doctor`s certificate or other proof of the problem which caused the exam to
be missed.
 The aegrotat exam will take place at the same time as the supplementary examination.
Leave of Absence
 Leave of absence is NOT granted for tutorial tests. Your mark for a missed tutorial test
will be recorded as zero.
 Your best 3 marks out of 4 tests are eventually chosen so you must concentrate your
efforts on the remaining tutorial tests.
 Do NOT miss a class test unless you have a very good reason for doing so.
 If you miss a class test, you must fill–in a leave of absence form obtainable from the
commerce secretary and return it to her together with any supporting documentation such
as the doctor`s certificates within 5 working days of missing the test.
 It is our policy to validate all supporting documentation.
 The granting, OR NOT, of such a leave of absence is at the lecturer`s discretion.
 If your leave of absence is approved, you will be given an assessed mark for the class
test.
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 Otherwise, if you fail to submit a leave of absence you will receive a zero mark.
 Under NO circumstances will any student be granted leave of absence for both class tests.
 Any student who is found to have fabricated excuses for being absent will be subjected to
disciplinary measures.
Roles and Responsibilities of the Learner
It is essential for a learner to be an active participant in the learning process. Thus, a learner
should:
 Engage in self-study before the lecture using the course hand outs.
 Diligently attend lectures and attempt tutorial questions.
 Conscientiously participate in tutorial tests.
 Collect assessed tutorial tests and model solutions.
 Practise questions from past papers.
 Identify problem areas and remedy them by seeking help from the lecturer and tutors and
supplemental instruction.
 Behave respectfully towards the lecturer and fellow students.
 Be punctual for all lectures and tutorials.
 Refrain from using cell phones during lectures and tutorials.
 Refrain from eating during lectures and tutorials.
 Participate in evaluation of lecturer, courses and tutorials in a constructive manner.
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Roles and Responsibilities of the Tutors
 Facilitating weekly tutorials.
 Clarifying student`s concerns and answering queries.
 Supporting the students.
 Marking of tutorial tests.
Roles and Responsibilities of the Lecturer
The lecturer shall strive to render a high quality service to students in terms of:
 Well-prepared course material. Thus, course notes tutorial worksheets and tests.
 Deliver all scheduled lectures.
 Timeously assess tutorials and tests.
 Regular, timely feedback.
 Provide guidance and support to help students succeed.
 Communicate relevant support structures within the university.
 Allow for active participation and input from students during lectures.
 Be accessible to students and available for consultation according to the times advertised.
 Arrange for appropriate course evaluation by the students, provide feedback and response
to any arising issues in these evaluations.
 Personal interest in students, both academically and generally.
Class Representatives
 The class shall be asked to elect 2 class representatives (1 female and 1 male) to liaise
with the lecturer on any matters regarding the course.
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 Should you have any problem with your course discuss it with your class representatives
who will bring the matter to the lecturer.
Rules and Regulations during Assessment Activities
 Cell phones must be switched off.
 Non-programmable calculators should be used.
 Each student should have his/her stationery.
 No cheating and/or communicating with each other.
 Bags and other belongings to be left at the front of the venue.
 Students should observe some silence.
 You are required to be seated in the test venue promptly at the start time-no late
admission will be allowed – you will be marked absent for the test, resulting in a ZERO
mark.
Calculators
 You will need a calculator that has financial and statistical functions. It is suggested that
you purchase the following calculator: SHARP EL-738 Financial Calculator if you are
pursuing Bachelor of Commerce Degree in Accounting and SHARP Scientific Calculator
if you are pursing any Bachelor of Commerce Degree.
 It is advisable that you buy and start using your own calculator as soon as the
course/module begins.
 It is extremely important to master the functions of your own calculator.
 Failure to use your own calculator has got negative results on your performance.
 Do not depend on borrowing a calculator from friends and relatives.

Lecture Schedule for Year 2018
DATE CONTENT TO BE COVERED

Learning Guide
Linear Functions
Linear Inequalities
Linear Programming
Tutorial Test 1
Laws of Indices
Differentiation - Rule 1,2,3 and 4
Differentiation - Rule 5,6 and 7
Differentiation – Rule 8 (Chain Rule)
Tutorial Test 2
Product rule and Quotient rule
Higher Order Differentiation and Stationary Points (Nature
of S.Points)
CLASS TEST 1
Simple interest and its application

Compound interest and its application
Timelines
Nominal and Effective rates of interest
Tutorial Test 3
Future value of Ordinary Annuity Certain
Present value of Ordinary Annuity Certain
Future value of Ordinary Annuity Due
Present value of Ordinary Annuity Due
Tutorial test 4
Present value of Ordinary Annuity Due
CLASS TEST 2
End of First semester Classes
xi

FINAL EXAMINATIONS BEGIN
xii

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Theory of Finance (TFN 111)

FACULTY OF SCIENCE AND AGRICULTURE

Theory of Finance (TFN 111)

Copyright Reserved: rchiruka@ufh.ac.za

Lecturer’s Contact Details

 Name: Mr. R.T CHIRUKA

3. Supplemental Instruction (SI) Leaders

1. Solve given problems using critical and creative thinking.

2. Apply given notes to solve the given problems.

3. To provide the necessary background to quantitative techniques that will be used in

Copyright Reserved: rchiruka@ufh.ac.za

Section A: Pure Mathematics (50%)

2. Differentiation including Chain rule, Product rule and Quotient rule.

3. Applications of differentiation – Stationary points and their nature.

Section B: Financial Mathematics (50%)

 Simple Interest and its Application

 Compound Interest and its Application

 Nominal and Effective Interest Rates

1st Topic: Linear Programming

By the end of this topic student should be able to:

 Set up a linear programming model or formulating constraints

 Graph the feasible region

2nd Topic: Differentiation

By the end of this topic students should be able to:

 Use the basic rules of differentiation

 Find stationary points and determine their nature

3rd Topic: Financial Mathematics

By the end of this topic students should be able to calculate:

Copyright Reserved: rchiruka@ufh.ac.za

 Simple Interest and its Application

 Compound Interest and its Application

 Nominal and Effective Interest Rates

Lecturers are held during the D time slot.

 All lectures are compulsory

 It is advisable to read these notes before and/or after each lecture.

 You have to be punctual

 Tutorial sessions are compulsory and the contribute to your

Copyright Reserved: rchiruka@ufh.ac.za

Any time between 14:00 and 16:00.

1. Tutorial and plus class assignments

2. Assignments and class

Copyright Reserved: rchiruka@ufh.ac.za

 The two tests shall constitute 70% of the DP.

Class Tests Dates Content Venue Time

Class Test 1 Pure Mathematics To be

5. Only one 3 hour examination be written in June.

Copyright Reserved: rchiruka@ufh.ac.za

 Your final mark is between 45% and 49% or;

 Aegrotat examinations are granted to students in special circumstances, such as illness or

 It is our policy to validate all supporting documentation.

 The granting, OR NOT, of such a leave of absence is at the lecturer`s discretion.

Copyright Reserved: rchiruka@ufh.ac.za

Roles and Responsibilities of the Learner

 Diligently attend lectures and attempt tutorial questions.

 Conscientiously participate in tutorial tests.

 Collect assessed tutorial tests and model solutions.

 Practise questions from past papers.

 Behave respectfully towards the lecturer and fellow students.

 Be punctual for all lectures and tutorials.

 Refrain from using cell phones during lectures and tutorials.

 Refrain from eating during lectures and tutorials.

 Participate in evaluation of lecturer, courses and tutorials in a constructive manner.

Copyright Reserved: rchiruka@ufh.ac.za

Roles and Responsibilities of the Tutors