This manuscript is designed for an introductory course in the theory of interest

and annuity. This manuscript is suitablefor a junior level course in the

mathematics of nance.

A calculator, such as TI BA II Plus, either the solar or battery version, will

be useful in solving many of the problems in this book. A recommended

resource link for the use of this calculator can be found at

http://www.scribd.com/doc/517593/TI-BA-II-PLUS-MANUAL.

The recommended approach for using this book is to read each section, work

on the embedded examples, and then try the problems. Answer keys are

provided so that you check your numerical answers against the correct ones.

This manuscript can be used for personal use or class use, but not for commercial

purposes. If you nd any errors, I would appreciate hearing from

you: m nan@atu.edu

This project has been supported by a research grant from Arkansas Tech

University.

Marcel B. Finan

Russellville, Arkansas

March 2009