# Mathematical Finance

## Mathematical finance is a field in applied mathematics that focuses on financial markets. At present, several universities around the world offer research programs and a degree in mathematical finance.

###### Asked in Math and Arithmetic, Mathematical Finance, Percentages, Fractions, and Decimal Values

### What is 20 percent of twelve thousand one hundred dollars?

I never saw much point in giving the answer to a mathematical
question if the person didn't explain how to get to that
answer.
With calculators today many mathematical equations are easy to
figure, but I am a strong believer in the person understanding the
formula and how it works, not just typing numbers into a calculator
and magically getting an answer.
The question is what is 20% of $12,100. First we must change the
percentage to a decimal, this is easily done by moving the decimal
place to spaces to the left (the % represents the decimal).
Therefore it gives us .20
Then simply multiply $12,100 x .20
12,100 x .20 = 2,420
Since we know we are dealing in dollars the answer is $2,420

###### Asked in Business Accounting and Bookkeeping, Mathematical Finance, Accounts Payable, Financial Statements

### What are two basic financial statements.Explain their importance to the various uses?

The two basic financial statements are the Income Statement or
Profit & Loss Statement and the Balance Sheet. The Income
Statement reflects the revenues and expenses for a period in time
such as January 1, 20xx through the date you are working on say
August 31, 20xx. These revenues and expenses give you the net
income or (loss) for that particular period.
The Balance Sheet is a report of the business for a point in
time, August 31, 20xx. The assets and liabilities of the business
as well as the owners equity in the business make up the Balance
Sheet. Assets - Liabilities = Owners Equity. The net income or
(loss) from the Income Statement flows over to the Balance Sheet
under the Equity section.
Business use these reports to understand the financial position
of their business ans where to make changes for future years.
Investors use these reports to make decisions on whether they want
to invest or provide loans to the business. Accountants use these
reports to prepare tax returns for both individuals and businesses
depending on the type of entity the are...corporation, partnership,
sole proprietorship.

###### Asked in Accepting Credit Cards, Personal and Payday Loans, Mathematical Finance

### What is personal finance?

Personal finance is 2 things...finance and personal.
The finance thing is money. Money is logical and financial
success requires that you pursue specific behaviors to properly
manage your money to that end. One of those specific behaviors is
using the dynamics of compound interest and compounding financial
gains. There are 3 finance tools...the personal budget, the
personal balance sheet and the personal life plan. For success you
need to spend less than you make (budget), own more than you owe
(balance sheet) and know where you are going or you might not get
there (life plan).
The personal thing is your human psychology and how it affects
your capacity to manage money and engage in the specific behaviors
that result in financial success. The psychological is affected by
IQ, age, addictions, mental illness and a built in capacity to make
excuses for financial shortcomings.
Put this together and you have personal finance.
Personal Finance are those loan/finance that you need for some
business or personal use. There are many types of loans available
in the financial market. You may use personal loans for getting
湖北体彩app, starting a business and buying a car.

###### Asked in Math and Arithmetic, Mathematical Finance

### What is 1 percent of 5 billion?

The answer depends on which country湖北体彩app you come from. A billion in
most of the English-language world (and some other countries) is
considered to be 1,000 million (short scale). In much of
continental Europe, South America and Africa a billion is
1,000,000 million (long-scale). The determination of how much a
billion is depends on which naming system your respective country湖北体彩app
uses; long-scale or short-scale.
Using the short-scale system, there are 100 units in a percent
so divide 5 billion (5,000,000,000) by 100 (which equates to
removing the last two zeros) and the answer is 50 million
(50,000,000).

###### Asked in Math and Arithmetic, Mathematical Finance

### Are there 100 pennies in 1 dollar?

Technically the
official name of the American coin is cent. The penny was never the
name of any US currency. A penny is British currency. In the past
the penny had a relatively low value. It still isn't worth much. At
this time a penny is defined as one hundredth of a British pound.
But many people refer to the cent as a penny.

###### Asked in Math and Arithmetic, Mathematical Finance, Algebra

### Jon deposits 1000 in an account that pays 8 percent interest compounded annually How long will it take to double your money?

1). My money will never double. Let's talk about Jon's money
instead.
2). It doesn't matter how much he deposits into the account. The
time required for it
to double is the same in any case.
3). At 8% interest compounded annually, the money is very very
very nearly ... but
not quite ... doubled at the end of 9 years.
At the end of the 9th year, the original 1,000 has grown to
1,999.0046. If the same
rate of growth were operating continuously, then technically, it
would take another
2days 8hours 38minutes to hit 2,000.
But it's not growing continuously; interest is only being paid
once a year. So if Jon
insists on waiting for literally double or better, then he has
to wait until the end
of the 10th year, and he'll collect 2,158.92 .

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