1. JAIIB-Accounting & Finance for Bankers
MODULE-A
BUSINESS MATHEMATICS
Calculation of Simple Interest
Calculation YTM
Capital Budgeting Techniques
Depreciation Methods

2. BUSINESS MATHEMATICS
Importance of Interest Calculation in a Bank
Types of Interest – Simple / Flat Interest
- Compound Interest
Importance of Rule 72
Annuities & its importance

3. BUSINESS MATHEMATICS
Annuities are essentially series of fixed payments required from you or paid to you at you at a specified frequency over the course of a fixed period of time
FV of Annuities
PV of Annuities

4. BUSINESS MATHEMATICS
Chapter – 2 – Calculation of YTM
Sources of Finance
- Debt – Bonds / Debentures
- Capital
- Loans
Bonds – Face Value, Coupon Rate, Maturity / Period, Redemption Value, Market Value

5. BUSINESS MATHEMATICS
Theorems for Bond Value
When the required Rate of Return is equal to the coupon rate, the value of the Bond is equal to its par value.
When the required rate of return (Kd) is greater than the coupon rate, the value of the bond is less than its par value.
When the required rate of return is less than the coupon rate, the value of the bond is greater than its par value etc.,

6. BUSINESS MATHEMATICS
3. Capital Budgeting Techniques
Decision Making – to acquire or not to acquire the capital goods.
Present Value = P = M / (1+r)n
- Pay Back Period
- IRR
- NPV
- PI
- Sensitivity Analysis

7. BUSINESS MATHEMATICS
4. Depreciation – Different Methods
a. Straight Line Method
b. Declining / Diminishing Balance Method
c. Accelerated Depreciation.
d. Sum of year’s Digit method
AS-6 deals with Depreciation Accounting