 # Introduction to Financial Mathematics

Published in 2015

Category:

 Topic Content 1 Introduction to Financial Mathematics – Understanding the Importance of Mathematics in Finance and Economics – The Role of Mathematics in Finance 2 Basic Mathematical Operations – Explaining the Exponent: Positive, Negative and Fractional – Computation Rules of Exponent – Application of Exponent 3 The Theory of Interest (Simple Interest) – Understand the Concept of Interest Rate – Explain the Fundamentals of Interest Rate, and Its Role in Finance – Derive and Compute the Simple Interest – Islam and Simple Interest 4 The Compound Interest – Derive and Compute the Compound Interest – Comparison Between Simple and Compound Interest Rate 5 The Time Value of Money – Part 1 – Explaining the Time Value of Money – Understand the Concept of Present Value – Computation of the Present value for Single Amounts 6 The Time Value of Money – Part 2 – Understand the Concept of Futurevalue of Money – Computation of the Future Value of Single Amounts – The Relationship between the Present Value and Future Value – Islam and Time Value of Money 7 Basic Probability Theory Concepts – Understanding the Basic Concepts of Probability and Statistics as the Mean, Variance, and Standard Deviation as well as their Meaning in Finance – Basic Rules of Probability 8 Risk and Return – Understand Risk and Return in Finance – Computation of Risk and Return