Introduction to the Mathematics of Money : Saving and Investing

Lovelock, David; Mendel, Marilou; Wright, Arthur L.

ISBN 10: 1441922326 / ISBN 13: 9781441922328

Published by Springer, 2010

About this Item

Seller Inventory # 11873046-n

Bibliographic Details

• Title: Introduction to the Mathematics of Money : Saving and Investing
• Publisher: Springer
• Publication Date: 2010
• Language: English
• ISBN 10: 1441922326
• ISBN 13: 9781441922328
• Binding: Soft cover
• Condition: New

About this title

Synopsis

This book is an introduction to the mathematics of finance. Part I focuses on analysis of deterministic cash flows, such as those generated by risk-free instruments such as bonds and annuities. Part II analyzes risky securities, such as stocks and options. This book is suitable for undergraduates in mathematics, economics and business programmes. It contains examples and exercises throughout. The book uses investing as a vehicle to introduce ideas, techniques and applications that might not be encountered in other mathematics courses. These include proofs by induction, recurrence relations, inequalities (in particular, the Arithmetic-Geometric Mean inequality and the Cauchy-Schwarz inequality), and the elements of probability and statistics. The book introduces the reader to principles of investing that will be of life-long practical use. This book targets students at the sophomore/junior level, without assuming a background or any experience in investing.

From the Back Cover

This is an undergraduate textbook on the basic aspects of personal savings and investing with a balanced mix of mathematical rigor and economic intuition. It uses routine financial calculations as the motivation and basis for tools of elementary real analysis rather than taking the latter as given. Proofs using induction, recurrence relations and proofs by contradiction are covered. Inequalities such as the Arithmetic-Geometric Mean Inequality and the Cauchy-Schwarz Inequality are used. Basic topics in probability and statistics are presented. The student is introduced to elements of saving and investing that are of life-long practical use. These include savings and checking accounts, certificates of deposit, student loans, credit cards, mortgages, buying and selling bonds, and buying and selling stocks.

The book is self contained and accessible. The authors follow a systematic pattern for each chapter including a variety of examples and exercises ensuring that the student deals with realities, rather than theoretical idealizations. It is suitable for courses in mathematics, investing, banking, financial engineering, and related topics.