Management Science

Download An introduction to the mathematics of money by David Lovelock PDF

By David Lovelock

ISBN-10: 0387344322

ISBN-13: 9780387344324

This is an undergraduate textbook at the easy facets of private discounts and making an investment with a balanced mixture of mathematical rigor and fiscal instinct. It makes use of regimen monetary calculations because the motivation and foundation for instruments of trouble-free actual research instead of taking the latter as given. Proofs utilizing induction, recurrence kin and proofs by means of contradiction are coated. Inequalities comparable to the Arithmetic-Geometric suggest Inequality and the Cauchy-Schwarz Inequality are used. simple themes in likelihood and information are awarded. the coed is brought to components of saving and making an investment which are of life-long sensible use. those comprise mark downs and checking money owed, certificate of deposit, scholar loans, charge cards, mortgages, trading bonds, and purchasing and promoting shares. The ebook is self contained and available. The authors persist with a scientific development for every bankruptcy together with various examples and workouts making sure that the coed offers with realities, instead of theoretical idealizations. it's appropriate for classes in arithmetic, making an investment, banking, monetary engineering, and comparable topics.

Show description

Read Online or Download An introduction to the mathematics of money PDF

Similar management science books

Logische Analyse der Struktur ausgereifter physikalischer Theorien ‘Non-statement view’ von Theorien

1. Falsche Orientierung am großen Bruder? Auf die Frage nach dem Gegenstand der Wissenschaftstheorie könnte guy die Antwort geben: "Kein Mensch weiß, wovon die Wissenschafts­ theorie handelt; denn sie ist eine Disziplin ohne Objekt. " Dies würde an die artwork und Weise erinnern, in der einst B. RUSSELL die Mathematik charak­ terisierte.

Land Management: The Hidden Costs

Mature ecological feedback of agricultural rules isn't effortless: objectives agreed in Biodiversity motion Plans needs to be completed inside of a framework of agricultural and monetary regulations. constructing a balanced answer is the essence of sustainability. till lately the hidden expenses of high-production platforms on biodiversity has been overlooked.

Das Phänomen der Rückverlagerung: Internationale Standortentscheidungen kleiner und mittlerer Unternehmen

Die heutige Standortdebatte wird dominiert vom einseitigen Blick auf Unternehmen, die den Produktionsstandort Deutschland verlassen. Doch gerade kleine und mittlere deutsche Unternehmen kehren aus dem Ausland auch wieder zurück. Anhand von 10 Fallbeispielen werden Problemlagen und Entscheidungsverhalten von KMU im Internationalisierungsprozess aufgezeigt.

Collateralized Debt Obligations: A Moment Matching Pricing Technique based on Copula Functions

The writer specializes in a mode to cost Collateralized Debt duties (CDO) tranches. the unique procedure is constructed through Castagna, Mercurio and Mosconi in 2012. The Thesis presents an extension of the unique paintings by way of generalizing the Gaussian dependence by way of Copula services. particularly the version is rewritten for the explicit case of the Clayton copula.

Additional info for An introduction to the mathematics of money

Example text

10. 30 2 Compound Interest and then use the geometric series8 1 + x + x2 + · · · + xn−1 = (xn − 1)/(x − 1), valid for x = 1 and n ≥ 1, with x = 1 + i and n = 12, to find that i satisfies 12 (1 + i) i −1 (1 + i) − 15 = 0. 20 on p. 6) and estimating where it crosses the horizontal axis (see Fig. 0339. 492. 2%. 040 i Fig. 11. 6)? 318 is another solution. But this solution does not satisfy 1 + i > 0, so we reject it. 0339 is the only acceptable solution? 35. 7) then we see that this is a polynomial equation of degree 12 in (1+i).

6) on p. 30 in the form (1 + i)13 − 16(1 + i) + 15 = 0. (a) Find three solutions of this equation by graphing the function f (x) = x13 − 16x + 15. (b) Find three solutions of this equation using the bisection method. (c) Find three solutions of this equation using Newton’s Method. (d) Show that one solution of this equation is i = 0. 5) on p. 29. 21. What are the interest rates compounded (a) monthly, (b) semi-annually, and (c) annually that yield the same return as an investment earning 6% interest compounded continuously?

1) where i = i(m) /m. Proof. We can prove this conjecture in at least two different ways: either using mathematical induction or using recurrence relations. We first prove it using mathematical induction. 1) is true for n = 1. We assume that it is true for n = k, that is, k Pk = P (1 + i) − 1 . i and we must show that it is true for n = k + 1. 1) is true for n = k + 1. This concludes the proof by mathematical induction. Pk+1 = P We now prove it using recurrence relations. We know that P1 = P and that for k > 0, Pk+1 = Pk (1 + i) + P, k+1 so if we multiply this by 1/(1 + i) 1 , then we can write it as Loosely speaking, an expression is in “closed form” if it does not contain terms such as “· · · ”.

Download PDF sample

Rated 4.86 of 5 – based on 26 votes