Financial arithmetic
Financial mathematics is the study of applying mathematical principles to money - a core component of society and its functioning. Understanding concepts such as percentages, interest, inflation, depreciation, and loan and investment structures equips individuals with the skills to make informed financial decisions and adapt to global economic changes. This knowledge not only improves financial literacy but also may lead to careers in finance, accounting, economics, business, and investment banking, which rely heavily on it. Understanding financial mathematics empowers individuals to take control of their finances, navigate complex economic systems, and better understand how money shapes our interconnected world.
This resource revises financial arithmetic and within financial arithmetic there are 3 key concepts:
- Core concepts of financial mathematics
- Financial decision making
- Value over time and depreciation
- Advanced financial modelling and applications
To determine if this resource will benefit you, start by answering the following questions.
- How can the right financial decision be determined?
- How does the value of money change over time?
- What factors influence the choice of the best loan or investment strategy?
The answers to these questions are provided on the following pages. Use this resource to refresh your memory, reinforce your understanding of these concepts, and prepare more effectively for university-level learning.