British Columbia Institute of

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

Transystems Part-time Studies Course

School of Construction and the Environment

BCIT is planning for a substantial return to on-campus activity for the fall 2021 term as informed by BC Public Health Officer guidelines. Refer to each course listing for details.

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.





Fall 2021

Below is one offering of this course for the Fall 2021 term.

CRN 30959

Start any time

This is a distance learning course. Start any time. You have 52 weeks from the date you register to complete this course.



Course Outline

TBD – see Learning Outcomes in the interim




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

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

TSYH 4720 is offered as a part of the following programs:

School of Construction and the Environment

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

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