# Engineering Economics Part 1: Fundamentals of Financial Calculations TSYH 4720

Transystems Part-time Studies Course

## Course details

An introduction to the time value of money and the effects of differing interest rates and periods of payment for both simple and compound interest. Time cash flow diagrams are developed and the theory of annuities is presented.

2.0

\$342.77

### Spring/Summer 2022

Below is one offering of TSYH 4720 for the Spring/Summer 2022 term.

#### CRN 20146

Start any time

• 26 weeks
• CRN 20146
• \$342.77
##### Continuous Entry, Distance or Online

This is a distance learning course. Start any time. You have 26 weeks from the date you register to complete this course.

TBD

##### Course outline

Course outline TBD — see Learning Outcomes in the interim.

\$342.77

##### Important information
1. Correspondence format.
2. Important course information will be sent to you immediately after registering. Check your myBCIT email account to access this information.
3. Please note that the above price is for tuition only; textbooks (if required) are additional. Course materials are available in the Learning Hub: learn.bcit.ca/ Textbooks are not shipped automatically, you must order them from the BCIT Bookstore: www.bcitbookstore.ca/distance/

## Learning Outcomes

Upon successful completion, the student will be able to:

## Module 1 - Simple Interest

• Convert percent rates to their correct fractional form.
• Determine the time period in a simple interest calculation under a variety of ways of stating loan periods.
• Describe the linear behavior of simple interest.
• Calculate the value for any variable in a simple interest model given sufficient data on the other variables.
• Construct cash flow diagrams from text descriptions and use these to obtain solutions to problems.

## Module 2 - Applications of Simple Interest and Discounting

• Setup and solve the equations of value.
• Understand what is meant by a negotiable instrument and specifically the nature of notes and drafts.
• Understand the terminology of promissory notes (maturity, date, legal due date, days of grace).
• Describe the difference between simple discount and bank discount and perform the necessary calculations from text descriptions.
• Determine final balances in partial payment plans.

## Module 3 - Compound Interest

• Understand the difference between simple interest and compound interest.
• Determine the interest rate per period and number of conversion periods from any nominal annual rate and loan duration.
• Apply the compound interest formula to determine present values, future values, interest rates per period and nominal annual rates, number of compounding periods, or loan duration from text descriptions.
• Apply correctly the techniques for determining present and future values under fractional periods of compounding.
• Convert nominal interest rates to effective rates.
• Find equivalent interest rates.
• Set-up and solve for financial equivalence using compound interest.

## Module 4 - Simple Case Annuities

• Describe the characteristics of annuities.
• Calculate the payment size, present value, future value, interest rate, or a number of payments for simple annuities due (beginning of period annuities).

## Module 5 - Other Type Annuities

• Apply the ordinary annuity model to solve for parameters or deferred annuities.
• Recognize the general or complex case annuity and to solve for parameters of this type of annuity.
• Solve for parameters of the perpetual annuity.
• Find capitalized costs and apply these in financial evaluation.
• Find final odd-sized payments in annuities.

Effective as of Fall 2003

## Related Programs

Engineering Economics Part 1: Fundamentals of Financial Calculations (TSYH 4720) is offered as a part of the following programs:

### School of Construction and the Environment

1. Civil Technology
Certificate Part-time
2. Public Works Supervision
Associate Certificate Part-time