Introduction
Financial Math – Math 1175 was designed specifically for students in the Lawrence Kinlin School of Business and the second semester course for all students in the Business program (MATH-1175). The textbook introduces students to the ideas, concepts, and applications of the mathematics of business and finance. Topics include: compound interest, annuities, payment schedules, mortgages, bonds, and investment decisions. The book is written at an introductory level, designed for students studying business, finance, or other related areas. The text is organized into eight chapters, and then divided into sub-chapters by concept or topic. The chapters are as follows:
| Chapter 1: Compound Interest | Chapter 1 extends the concept of interest to compound interest, including the calculation of future value, present value, the interest rate, and term. |
| Chapter 2: Annuities | Chapter 2 explores the calculation of future value, present value, payment, interest rate and term to both ordinary annuities and annuities due, as well as deferred annuities and perpetuities. |
| Chapter 3: Loans and Mortgages | Chapter 3 extends annuity calculations to loans and mortgages, focusing on the amortization schedule, calculations associated with mortgage renewal, and calculations related to a mortgage’s pre-payment options. |
| Chapter 4: Bonds and Sinking Funds | Chapter 4 covers the concepts of bonds, including calculating the purchase price of a bond, the quotation of a bond, bond schedules, and sinking funds. |
| Chapter 5: Business Investment Decisions | Chapter 5 examines the use of net present value and internal rate of return in making a business decision. |
“About This Book” from Business and Financial Mathematics by Valerie Watts is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.
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