UNIVERSITY OF TORONTO

ACT240: Mathematics of Investment and Credit

Comprehensive Study and Exam Preparation Guide 2026

Part 01: Revision Notes

Part 02: Practice Examination Paper

Part 03: Detailed Solutions and Explanations

Part 04: Proven Exam Strategies and Tips

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University of Toronto - Mathematics of Investment and Credit (ACT240)

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ACADEMIC YEAR 2026 - 2027

University	University of Toronto
Study Level	Undergraduate
Course Code	ACT240
Course Name	Mathematics of Investment & Credit
Notes Title	Comprehensive Study and Exam Prep. Guide
Page Length	64

Get exam-ready for Mathematics of Investment and Credit (ACT240) at U of T with a concise revision guide and notes. It explains core ideas in clear language, with step-by-step illustrations and worked examples that show how to apply each method. When you’re done reviewing, take a full-length sample exam written to mirror real conditions, complete with solutions and explanations. You’ll also find practical tips for reading questions, organizing your work, and avoiding common mistakes. Use this guide to review faster, check understanding as you go, and build confidence for your course exam.

ACT240: Mathematics of Investment and Credit explores the theory of interest and its applications in finance. Main topics to be covered include simple and compound interest, nominal interest and discount rates, and the force of interest. Students will also examine inflation, the risk of default, and various types of annuities (immediate, due, and those with different payment intervals). The course emphasizes annuity valuation at any point, as well as more complex annuities with arithmetic or geometric progressions. Additional sections cover loan amortization, bond valuation, callable bonds, and the calculation of yield rates on investments.

To enroll, students must meet the prerequisite of achieving a minimum grade of 63% in MAT137 or 60% in MAT157. Those who have taken ACT230 are excluded from enrolling in ACT240. Through this course, students develop essential financial mathematics skills such as pricing annuities, managing loan amortization, and measuring the rate of return on investment funds.

COURSE CODE	COURSE NAME
ACT240	Mathematics of Investment & Credit
ECO101	Principles of Microeconomics
ECO102	Principles of Macroeconomics
ECO206	Microeconomic Theory
ECO220	Introduction to Data Analysis & Applied Econometrics
ECO227	Foundations of Econometrics
ECO372	Data Analysis & Applied Econometrics in Practice
ECO374	Forecasting and Time Series Econometrics
ECO375	Applied Econometrics I
EEB225	Biostatistics for Biological Sciences
MGM390	Business Law
PSY201	Statistics I
RSM219	Introduction to Financial Accounting
RSM220	Intermediate Financial Accounting I
RSM221	Intermediate Financial Accounting II
RSM222	Management Accounting I
RSM225	Legal Environment of Business I
RSM230	Financial Markets
RSM250	Principles of Marketing
RSM260	Organizational Behaviour
RSM332	Capital Market Theory
RSM333	Corporate Finance
RSM336	Investments
RSM433	Advanced Corporate Finance
RSM435	Futures and Options Markets
SOC202	Introduction to Quantitative Methods in Sociology
STA220	The Practice of Statistics I

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Updated for 2026

University of Toronto - Mathematics of Investment and Credit (ACT240)

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