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Financial Arithmetic

Basic math skills for business economics students. Contains exponential and logarithmic growth, investment decisions, other applications and more.

Available languages:
English English
Dutch Dutch

Course content

Chapter 1: Basic Algebra Skills

  • Linear functions
    1. Linear equations
    2. General solution of a linear equation
    3. Linear functions and lines
  • Quadratic functions
    1. The quadratic formula
    2. Quadratic equations
    3. Quadratic functions and parabolas
  • Negative exponents
    1. Negative exponents
    2. Equations with negative exponents

Chapter 2: Exponential and logarithmic growth

  • Exponential growth
    1. The notion of exponential function
    2. Exponential growth
  • Logarithmic growth
    1. The notion of logarithm
    2. Rules of calculation for logarithms
    3. Equations with logarithms
  • Future value
    1. Future value without additional payments
    2. Present value
    3. Calculating interest and duration
    4. Equivalent percentages
    5. Other applications of exp and log

Chapter 3: Sequences and series

  • The notions of sequence and series
    1. The notions of sequence and series
  • Arithmetic series
    1. Arithmetic sequences
    2. Arithmetic series
  • Geometric series
    1. Geometric sequences
    2. Geometric series
  • Financial applications of sequences and series
    1. Terminal value of a deposit
    2. Present value of an interest
    3. Pre and postnumerando interests
    4. Varying terms, varying interest percentages
    5. Bullet loan
    6. Linear loan
    7. Annuities
    8. Other applications of sequences and series

Chapter 4: Assessing investments

  • Introduction to assessing investments
    1. Assessing investment proposals
  • Accounting approach
    1. Payback period
    2. Average rate of return
  • Economic approach
    1. The economic approach
    2. Discounted payback period
    3. Net present value
    4. Internal rate of return

Chapter 5: Functions and optimization

  • Differentiation
    1. Derivative of a polynomial
    2. Tangent lines
  • Optimal order quantity
    1. Local minima and maxima
    2. Analysis of functions
  • Economical applications
    1. Economical applications
    2. Expected return and capital structure

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