10. The Math of Finance

  1. Pamela Peterson Drake and
  2. Frank J. Fabozzi

Published Online: 1 DEC 2011

DOI: 10.1002/9781118267790.ch10

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management

How to Cite

Drake, P. P. and Fabozzi, F. J. (2010) The Math of Finance, in The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118267790.ch10

Publication History

  1. Published Online: 1 DEC 2011
  2. Published Print: 7 SEP 2010

ISBN Information

Print ISBN: 9780470609712

Online ISBN: 9781118267790

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Keywords:

  • financial managers;
  • asset managers;
  • compound interest;
  • accumulated interest;
  • saving account

Summary

This chapter contains sections titled:

  • Why the Time Value of Money?

  • Calculating the Future Value

  • Calculating a Present Value

  • Determining the Unknown Interest Rate

  • The Time Value of a Series of Cash Flows

  • Annuities

  • Loan Amortization

  • Interest Rates and Yields

  • The Bottom Line

  • Solutions to Try It! Problems

  • Questions