Business math presentation

1. Submitted by:
Name: Md. Anayet Hossain Rifat
ID: 22230331108
Sec: B, Batch:31st
Submitted to:
Professor Dr. Md. Showkat Ali
Masters of Business Administration (Professionals)
Faculty of Business Administration
Bangladesh University of Professionals

2. Term Paper and
Presentation on
Mathematics of Finance

3. The Fundamental Concepts And Key Terms
Of Financial Mathematics.
 Financial mathematics is the study of mathematical models
and principles to aid in the management, analysis, and
interpretation of financial data. It encompasses a wide range
of topics from investment analysis and portfolio management
to insurance and risk management.

4. Major concepts in financial mathematics
include:
 Interest rate (compound interest, simple interest, annuity)
 compound interest: Compound interest is the interest on savings calculated
on both the initial principal and the accumulated interest from previous
periods.
 simple interest: Simple interest is an interest charge that borrowers pay
lenders for a loan. It is calculated using the principal only and does not
include compounding interest.
 Present value: Present value is the sum of money that must be invested in
order to achieve a specific future goal.
 Future value: Future value is the dollar amount that will accrue over time
when that sum is invested.

5. Application of financial mathematics?
 One application for financial mathematics is risk
management. Using this strategy can help
professionals identify and manage financial
risks. Financial analysts often use mathematics to
analyze market data, find patterns in data and
predict risks.

6. Thank You