- #1
adnan jahan
- 96
- 0
hy,,,, We are doing work in the field of financial mathematics. Is there anyone who can colaborate with us in the field of financial planing.
tala said:The original amount of an inheritance was just sufficient at 8% effective to pay 5000 at the end of each year for 10 years.the payments of 5000 were made for the first 5 years even though the fund actually
Earned 10% effective.how much excess interest was in the fund at the end of 5 years?
answer is 3544.22..please help me in finding the approach to solve it
it is a kind of amorization I think.
tala said:If anyone know the answer please tell me..I need it
Financial mathematics is a branch of mathematics that applies mathematical methods and tools to analyze and solve financial problems. It involves using mathematical models and techniques to understand and predict the behavior of financial markets, assets, and investments.
Financial mathematics has a wide range of applications in the real world, including risk management, portfolio optimization, option pricing, credit risk analysis, and financial forecasting. It is also used to develop financial products and strategies to maximize profits and minimize risks.
To excel in financial mathematics, one needs to have a strong foundation in mathematics, statistics, and economics. Other important skills include critical thinking, problem-solving, and programming abilities. A good understanding of financial markets and products is also crucial.
Financial mathematics provides tools and techniques to analyze and evaluate financial data and make informed decisions. By using mathematical models and methods, it helps to quantify risks, assess the feasibility of investment opportunities, and determine the optimal course of action.
Some challenges in financial mathematics include dealing with complex and uncertain data, developing accurate and robust models, and keeping up with the constantly changing financial landscape. It also requires a deep understanding of financial markets and products, as well as the ability to communicate technical concepts to non-technical stakeholders.