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BCIT

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

Transystems Part-time Studies Course

School of Construction and the Environment

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.

Credits

2.0

Cost

$316.67

Spring/Summer 2018

Below is one offering of this course for the Spring/Summer 2018 term.

CRN 20146

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.

Instructor

Ken Zeleschuk

Course Outline

Cost

$316.67

Notes

  1. Correspondence format.
  2. Students may register at any time throughout the year and have a maximum of 52 weeks from the date of registration to complete the course. To register by phone, please call Student Information & Enrolment Services at 1-866-434-1610 or 604-434-1610. Please note that the above price is for tuition only; textbooks and materials are additional. Course materials and textbooks are not shipped automatically, you must order them from the BCIT Bookstore: www.bcitbookstore.ca/distance
  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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The personal information on this form is collected under the authority of the College and Institute Act (RSBC 1996, Ch.52). BCIT will use this information to communicate with you regarding relevant BCIT programs, courses and services. This information is only used by authorized BCIT staff. Email communication sent to and from BCIT is routed through the United States of America. If you have any questions about BCIT's collection and use of this information, please contact BCIT’s manager of Information Access and Privacy.

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Registration is currently open for the Spring/Summer 2018 term.

The sneak preview for the Fall 2018 term starts Fri, May 25 at 8:30 am (PDT).

Students may register for Fall 2018 term courses online, by phone, mail or in-person starting Wed, May 30 at 9:00 am (PDT).

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