CURRENT REAL-LIFE ISSUES ANALYSED IN THE COURSE OF FINACIAL MATHEMATICS

This paper presents a case study focused on a presentation of a topical issue to students in a course of Financial Mathematics who discovered, by calculating concrete examples, the weaknesses and inconsistencies of the annual percentage rate which may cause disputes between consumers, loan providers and state inspection authorities. The chosen topic and its real-life background made the students think critically about the directives concerning consumer loans derived from Czech legislative and EU regulations. This approach to the teaching of financial mathematics encourages students to be inquiring about the nature of financial products and indicators and enables them to see that with the acquired theoretical background and the skills regarding the use of mathematical software, they are able to make necessary verifications and product analyses. At the same time, the topical issues make the course more interesting for the students and make particular lessons more meaningful.