Financial Mathematics

 

Today I want to share about Financial Mathematics with you all...

 

Ocay, What is Financial Mathematics ? Actually Financial Mathematics is a way for the Banks in its calculation of any loan or for its investment products.

 

Actually, in Financial Mathematics, we have learnt that for the price of, for example, the price of a car is a $80000, then we want to make a loan with the bank for amount of $80000. Then, we want to make a loan for ten years with the rate of the interest of the bank is as much as 4% a year. So we want to know how much should we pay every month with the interest of 4% a year as much as 10 years. How much should we pay a month ?

 

In a short note, we use Financial Mathematics method to calculate the installment for every month of the car.

 

In a investment, for example, one company offer a dividen as much as 6% a year if we invest our money with their company. Ocay, if we invest one time for $10000, how much it is of our money accumulate after 10 years ? In this situation, we also use Financial Mathematics to calculate our money after 10 years investment.

 

Second example is, if we invest $100 a month with 6% a year as dividen, how much will be of our money to be accumulated after 20 years. In this situation, we also use Financial Mathematics to calculate of our money after 20 years.

 

In a short note, Financial Mathematics is an about of interest and dividen. Hehehehe...

 

Ocay, that`s all for today my beloved friends... Happy reading.... =)

 

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