Classical Financial Mathematics: Basic Ideas, Central Formulas and Terms at a Glance (essentials)

Description

This essential teaches basic formulas, methods and ideas of classical financial mathematics. Since classical financial mathematics makes do with elementary mathematical tools, any interested reader with average mathematical school knowledge can easily follow this text. The core of the text is the calculation of interest and compound interest, annuity calculation, amortization calculation and price calculation. A large number of practical examples illustrate the mathematical questions. This Springer essential is a translation of the original German 1st edition essentials, Klassische Finanzmathematik by Bernd Luderer, published by Springer Fachmedien Wiesbaden GmbH, part of Springer Nature in 2019. The translation was done with the help of artificial intelligence (machine translation by the service DeepL.com). A subsequent human revision was done primarily in terms of content, so that the book will read stylistically differently from a conventional translation. Springer Nature works continuously to further the development of tools for the production of books and on the related technologies to support the authors. What You Can Find in This essential Preface Contents 1 Introduction 2 Time is Decisive 3 How to Pay Interest? Linear Interest Calculation Geometric Interest Calculation 4 Reaching Your Goal Through Regular Saving 5 Annuity Calculation—Not Only for Pensioners Annuities in Advance Annuities in Arrears Perpetual Annuities (Perpetuities) 6 Would You Rather Be a Debtor or Creditor? Repayment by Installments (Annual Payments) Annuity Amortization (Annual Agreements) 7 Short and Long Periods Payments during the year, linear interest Interest during the year Continuous compounding 8 Bonds, Coupons, and Yields 9 The Cherry on the Cake is the Rate of Return Trial and Error Procedures The Equivalence Principle Examples for the Determination of Returns 10 What Else is Important? What You Learned From This essential Basic Formulas References