Financial Mathematics: A Computational Approach

Product Details:
Author(s):
Pereira, K ,
Modhien, N and
Hunt, K
Year Published:
2019
Edition
2nd Edition
Type:
Print | Soft Cover
Language:
English
About this publication
This book introduces the fundamentals of financial mathematics. It begins with a discussion of simple and compound interest and then establishes the important concepts of effective and equivalent effective interest rates. Subsequent chapters discuss the applications of annuities to practical problems regarding the saving of money and repayment of loans. The notion of using net present value and internal rate of return to distinguish between two different investment opportunities is presented. The concluding chapters of the book take a brief look at the use of differential and integral calculus in financial mathematics. Each chapter includes numerous worked examples that are solved with the aid of a financial calculator where applicable.
Key words that describe the book:
Problem-solving
Financial mathematics
Financial calculator
Content
Chapter 1: Simple and Compound Interest
Chapter 2: Nominal, Effective and Equivalent Effective Interest Rates
Chapter 3: Applications of Simple and Compound Interest
Chapter 4: Annuities
Chapter 5: Applications of Annuities to Savings I
Chapter 6: Applications of Annuities to Savings II
Chapter 7: Applications of Annuities to Loans I
Chapter 8: Applications of Annuities to Loans II
Chapter 9: Newton’s Method
Chapter 10: Cash Flow
Chapter 11: Continuous Compounding and Continuous Money Flow
Appendix A: Derivation of the Formula for Growing Annuities
Appendix B: Derivation of the Formulas for Balance Outstanding
Appendix C: Derivation of the Formula for Continuous Compounding
Interest / Benefit to
First-year accountancy and commerce students.