Module manager: TBC
Email: TBC
Taught: Semester 1 (Sep to Jan) View Timetable
Year running 2026/27
MATH1000 Core Mathematics, AND MATH1700 Probability and Statistics
| MATH1000 | Core Mathematics |
| MATH1700 | Probability and Statistics |
MATH3510 Actuarial Mathematics 1
This module is not approved as a discovery module
The module introduces the theory of interest rates and the time value of money in the context of financial transactions such as loans, mortgages, bonds and insurance. The module also introduces the basic theory of life insurance where policy payments are subject to mortality probabilities.
The module introduces students to actuarial mathematics and covers several important applications involving certain cashflows. Students are then equipped to consider life contingent risks where survival probabilities are introduced. The module will prepare students for further study of actuarial mathematics and introduce software skills needed in industry.
On successful completion of the module students will be able to: 1. Calculate different types of interest rates and use these to accumulate single and multiple certain cashflows. 2. Understand and carry out calculations involving the term structure of interest rates. 3. Perform basic asset and liability matching based on the duration and convexity of cashflow profiles. 4. Be able to carry out basic project appraisal. 5. Describe survival functions and their relationship with survival probabilities. 6. Define the main types of life insurance policies for a single life and compute expected present values of benefits and premium for such policies. 7. Use equations of value to compute net premiums for the insurance policies introduced in 5.
1. Simple interest rates and compound interest rates with different compounding frequencies. 2. Accumulation and discounting of cashflow profiles with multiple certain cashflows using different interest rates. 3. Spot rates and forward rates of interest and the yield curve. 4. Real and nominal interest rates. 5. Sensitivity of the present value of cashflow profiles to changes in the interest rate and asset-liability matching using duration and convexity. 6. Applications e.g. loans, bonds, mortgages. 7. Net present value and internal rate of return. 8. Survival probabilities and life tables. 9. Basic life insurance policy types and the expected present value of benefits. 10. Life contingent annuities and premiums. 11. Computation of net premiums for basic life insurance policies.
| Delivery type | Number | Length hours | Student hours |
|---|---|---|---|
| Lecture | 44 | 1 | 44 |
| Private study hours | 156 | ||
| Total Contact hours | 44 | ||
| Total hours (100hr per 10 credits) | 200 | ||
Check the module area in Minerva for your reading list
Last updated: 12/05/2026
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