The main importance of Financial mathematics is driven from its rule through the process of decision making for different field such as banking and investment to find out the best option among the different option.
It provides students with a solid grounding in the group of mathematical investment instruments and experience of its application to the analysis of financial transactions like interest.
Having successfully completed this module, student will be able to demonstrate knowledge and understanding of:
- Definition of the Interest rate and different type of it with various applications.
-Define and use standard compound interest functions.
- Calculate the value and accumulated value of a cash flow of equal and unequal payments.
Describe how a loan may be repaid by regular installments of interest and capital. -