An Introduction to the Mathematics of Finance book cover

An Introduction to the Mathematics of Finance

A Deterministic Approach

An Introduction to the Mathematics of Finance: A Deterministic Approach, 2e, offers a highly illustrated introduction to mathematical finance, with a special emphasis on interest rates. This revision of the McCutcheon-Scott classic follows the core subjects covered by the first professional exam required of UK actuaries, the CT1 exam. It realigns the table of contents with the CT1 exam and includes sample questions from past exams of both The Actuarial Profession and the CFA Institute. With a wealth of solved problems and interesting applications, An Introduction to the Mathematics of Finance stands alone in its ability to address the needs of its primary target audience, the actuarial student.

Hardbound, 464 Pages

Published: June 2013

Imprint: Butterworth Heinemann

ISBN: 978-0-08-098240-3


  • "Stephen Garrett’s new edition of Introduction to the Mathematics of Finance gives an excellent, concise, and thorough treatment of the fundamentals of financial mathematics. By updating the original edition with more emphasis on derivative pricing, this book has become an up-to-date first class textbook on this topic."  --P.M. Barrieu, London School of Economics

    "This 2nd edition will give students excellent support when tackling the Actuarial Profession’s examination in Subject CT1. It is written in a clear and concise way, and a wide range of realistic and relevant examples are provided which make the subject come alive. I will be recommending it to my students."  --Ben Rickayzen, Cass Business School 

    "This edition is a timely update to a textbook that for many years was essential reading for actuarial students.  It  should prove to be a  valuable resource for current students taking the CT1 exam."  -John Millett, University of Kent 


    1. Introduction
    2. Theory of Interest Rates
    3. The Basic Compound Interest Functions
    4. Further Compound Interest Functions
    5. Repayment Schedules
    6. Project Appraisal and Investment Performance
    7. The Valuation of Securities
    8. Capital Gains Tax
    9. Yield Curves and Immunization


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