Financial mathematics: Use mathematics to plan and control financial instruments
Subject outcome
Subject outcome 5.1: Use mathematics to plan and control financial instruments
Learning outcomes
- Use simple and compound growth formulae, [latex]\scriptsize A=P\left( {1+in} \right)[/latex], [latex]\scriptsize A=P{{\left( {1+i} \right)}^{n}}[/latex] and [latex]\scriptsize A=P{{\left( {1+\displaystyle \frac{r}{{100\times m}}} \right)}^{{t\times m}}}[/latex], to solve problems, including interest, hire-purchase and inflation.
- Understand, use and interpret tax tables.
- Use simple and compound decay formulae, [latex]\scriptsize A=P\left( {1-in} \right)[/latex] and [latex]\scriptsize A=P{{\left( {1-i} \right)}^{n}}[/latex], to solve problems (straight line depreciations and depreciation on a reducing balance).
Unit 1 outcomes
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 [latex]\scriptsize A,~\text{ }P,\text{ }~i~[/latex] and [latex]\scriptsize n[/latex].
Unit 2 outcomes
By the end of this unit you will be able to:
- Understand the different tax categories.
- Use tax tables to answer questions.
Unit 3 outcomes
By the end of this unit you will be able to:
- Calculate straight-line depreciation.
- Calculate reducing-balance depreciation.
- Calculate the values of [latex]\scriptsize A,~P,~i~[/latex] and [latex]\scriptsize n[/latex].
