Application of Mathematics in Financial Management
Subject Areas : Multi-Criteria Decision Analysis and its Application in Financial Management
Sanjay
Tripathi
1
(Department of Mathematics, The Maharaja Sayajirao university of Baroda)
Keywords: Interest, Time value of money, Present and Future value, Annuities, Calculus,
Abstract :
The Time Value of Money is a important concept in Financial Management. The Time Value of Money includes the concepts of future value and discounted value or present value. In the present article, the basic notions and illustrate with their application in the field of investment which is presented in the mathematical terms in form of theorems and we also presented the applications of some well known problems with the proof such as mortagage loan problem, investment in bond and an individual who plans to retire in certain years who plan for invest-ment for its future life. We also presented the application of calculus that is limit, derivative and integration in financial management.
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