Financial mathematics: Use mathematics to plan and control financial instruments

• Use simple and compound growth formulae, $\scriptsize A=P\left( {1+in} \right)$, $\scriptsize A=P{{\left( {1+i} \right)}^{n}}$ and $\scriptsize A=P{{\left( {1+\displaystyle \frac{r}{{100\times m}}} \right)}^{{t\times m}}}$, to solve problems, including interest, hire-purchase and inflation.
• Understand, use and interpret tax tables.
• Use simple and compound decay formulae, $\scriptsize A=P\left( {1-in} \right)$ and $\scriptsize A=P{{\left( {1-i} \right)}^{n}}$, to solve problems (straight line depreciations and depreciation on a reducing balance).

By the end of this unit you will be able to:

• Understand and apply the simple interest formula.
• Understand and apply the compound growth formulae.
• Understand and apply the compound growth formulae with interest compounded more than once a year.
• Calculate the values of $\scriptsize A,~\text{ }P,\text{ }~i~$ and $\scriptsize n$.

By the end of this unit you will be able to:

• Understand the different tax categories.
• Use tax tables to answer questions.

By the end of this unit you will be able to:

• Calculate straight-line depreciation.
• Calculate reducing-balance depreciation.
• Calculate the values of $\scriptsize A,~P,~i~$ and $\scriptsize n$.