Mathematics for Finance, Business and Economics

Description

Mastering the basic concepts of mathematics is the key to understanding other subjects such as Economics, Finance, Statistics, and Accounting. Mathematics for Finance, Business and Economics is written informally for easy comprehension. Unlike traditional textbooks it provides a combination of explanations, exploration and real-life applications of major concepts. Mathematics for Finance, Business and Economics discusses elementary mathematical operations, linear and non-linear functions and equations, differentiation and optimization, economic functions, summation, percentages and interest, arithmetic and geometric series, present and future values of annuities, matrices and Markov chains. Aided by the discussion of real-world problems and solutions, students across the business and economics disciplines will find this textbook perfect for gaining an understanding of a core plank of their studies. Cover Title Page Copyright Page Preface Table of Contents Introduction 1: Elementary Mathematical Concepts and Operations 1.1 Simple Operations on Positive and Negative Numbers 1.2 Fractions and Square Roots 1.3 BEDMAS 1.4 Algebraic Expressions 1.5 Expanding Brackets 1.6 Factorizing Algebraic Expressions 1.7 The Cartesian Plane Summary Exercises 2: Linear Equations 2.1 Equations and Linear Equations 2.2 Linear Equations (LE) of One Variable 2.3 The Equation of a Line 2.4 Graphing a Linear Function 2.5 Slope of a Line 2.6 Economic Application of Linear Equations: Supply and Demand Models 2.7 Simultaneous Linear Equations 2.8 Solving a Set of Linear Equations 2.9 The Equation of a Line Revisited Summary Exercises 3: Non-Linear Functions and Equations 3.1 Quadratic Equations 3.2 Solving a Quadratic Equation Using the Perfect Square 3.3 Graphing the Quadratic 3.4 Powers 3.5 Roots 3.6 Exponential Functions 3.7 Logarithms Summary Exercises 4: Functions and Differentiation 4.1 Functions 4.2 Definition of the Derivative 4.3 Calculating the Derivatives 4.4 Minima and Maxima 4.5 Price Elasticity of Demand Summary Exercises 5: Economic Application of Functions and Differentiation 5.1 Cost Concepts 5.2 Revenue, Cost, Profit and Break-Even Point 5.3 Maximizing Profit and Minimizing Cost 5.4 Marginal Revenue and Cost 5.5 Opportunity Cost Summary Exercises 6: Summation, Percentages and Interest 6.1 ∑ummation Sign ∑ 6.2 Percentages 6.3 Interest 6.4 Time Value of Money 6.5 Depreciation of an Asset 6.6 Nominal and Effective Interest 6.7 The Future Value of a Sequence of Payments Summary Exercises 7: Arithmetic and Geometric Series 7.1 Series 7.2 Arithmetic Series 7.3 Geometric Series Summary Exercises 8: Annuity and Amortization 8.1 Savings account 8.2 Present Value of an Annuity 8.3 Amortization Summary Exercises 9: Matrices and Markov Chains 9.1 What is a Matrix 9.2 Matrices and Operations on Matrices 9.3 Determinant and the Cramer's rule 9.4 Markov Chains Summary Exercises Solutions Bibliography Picture credits Glossary Index About the authors