Essentials of linear algebra. Multivariable optimization and constrained optimization in the general case of n variables. The basic deterministic model. Interest and discount. Simple interest. Discount functions. Compound interest. Force of interest. The constant interest case. Axiomatic derivation of the law of compound interest. Annuities and perpetuities. Introduction to obligations. Basic concepts related to loans/mortgages. Choice among investments: net present value and internal rate of return. Duration matching strategies and immunization.