Financial, Commercial, and Mortgage Mathematics and Their Applications.

Cover -- Half Title -- Title -- Copyright -- Contents -- Preface -- SECTION ONE MATHEMATICAL FOUNDATION -- CHAPTER ONE MATHEMATICAL FOUNDATION -- Introduction -- Organization of the Text -- Basic Mathematical Tools -- Introduction to Geometric Series -- Introduction to Arithmetic Series -- The Meaning of the Number e -- Exponential Functions and Logarithmic Functions -- Basic Differential Calculus -- Taylor's Theorem -- Problems -- Summary -- SECTION TWO TIME VALUE OF MONEY -- CHAPTER TWO THE TIME VALUE OF MONEY-CONVENTIONS AND DEFINITIONS -- Conventions -- Summary -- CHAPTER THREE SIMPLE RATE OF INTEREST -- Future Value of an Amount -- Present Value of an Amount -- Definition of an Annuity -- Future Value of an Annuity -- Present Value of an Annuity -- Problems with Solutions on Simple Rate of Interest -- Summary -- CHAPTER FOUR THE TIME VALUE OF MONEY WITH ANNUAL COMPOUNDING -- Future Value of an Amount -- Present Value of an Amount -- Determining Target Interest Rates and Periods -- Finding the Unknown Period -- Finding the Unknown Rate of Interest -- Summary -- CHAPTER FIVE TIME VALUE OF MONEY WITH AN ANNUITY -- Future Value of an Annuity -- Present Value of an Annuity -- Present Value of Perpetuity -- Mathematical Relationship between Present and Future Value of an Annuity -- Finding Unknowns k and n in Case of Annuities -- Summary -- CHAPTER SIX THE TIME VALUE OF MONEY WITH MULTIPLE COMPOUNDING PERIODS PER YEAR -- Future Value of an Amount -- Present Value of an Amount -- Future Value of Annuity -- Present Value of Annuity -- Five-Minute Mathematics of Time Value of Money -- CHAPTER SEVEN CONTINUOUS COMPOUNDING -- Time Value of Money under Continuous Compounding -- Summary -- CHAPTER EIGHT SPECIAL TOPICS IN TIME VALUE OF MONEY -- Obtaining the Time Value of Money for Fractional Periods.

Computing the Present and Future Values of the Deposits Which Start m Periods Hence -- Deposits (or Dividends or Any Future Income or Expense) Growing at a Constant Rate, g) -- A Simple Procedure to Amortize a Loan -- Finding Time Value of Money Using Financial Calculators -- Summary -- CHAPTER NINE SPECIAL TOPICS IN FINANCE -- Time Value of Money: The Case of Arithmetic and Geometric Growth and Their Applications -- Present Value of a Series of Cash Flow with Finite and Infinite Geometric Growth -- Present Value of Cash Flows with Arithmetic Growth -- Special Cases under Arithmetic Growth -- Application of Arithmetic and Geometric Growth -- Time Value of Money Formulas -- Time Value of Money Problems (Chapters 2 to 9) -- Suggested Readings -- SECTION THREE COMMERCIAL MATHEMATICS -- CHAPTER TEN COMMERCIAL MATHEMATICS-I -- The Generalized Loan-Pricing Model -- From Borrower's Point of View -- From Lender's Point of View -- Computational Problems: Commercial Mathematics -- CHAPTER ELEVEN COMMERCIAL MATHEMATICS-II -- Add-On Interest Loans -- A Very Important Point -- Repayment Plans on Loans -- Level Principal and Interest on the Balance Loans -- Computational Problems: Commercial Mathematics -- Additional Problems: Commercial Mathematics -- Suggested Readings -- SECTION FOUR MORTGAGE MATHEMATICS -- CHAPTER TWELVE MORTGAGE MATHEMATICS -- Periodic Mortgage Payments -- Discount Points -- Fixed Rate Mortgage (FRM) Mathematics in 10 Minutes -- A Quick Guide to Obtain Various Measures in Fixed Rate Mortgage Problems Using Calculator -- Mortgage Theorems under FRM -- Summary and Conclusion -- Notes -- Suggested Readings -- CHAPTER THIRTEEN GRADUATED PAYMENT MORTGAGES -- Graduated Payment Mortgages with Constant Percentage Increases -- Mortgage Balance Remaining under the GPM -- Interest Expense under the GPM -- Mortgage Theorems under GPM.

CHAPTER FOURTEEN GRADUATED PAYMENT MORTGAGES WITH CONSTANT PERCENTAGE INCREASES THROUGH A STIPULATED PERIOD -- Computation of the Mortgage Balance Remaining under TGPM -- Separation of Interest and Principal Payments and Computation of Total Interest Paid under TGPM -- Other Forms of Graduated Payment Mortgages -- Summary -- CHAPTER FIFTEEN ADJUSTABLE RATE MORTGAGE (ARM) -- What Is an ARM? -- The Basic Features of an ARM -- Types of ARMs -- CHAPTER SIXTEEN VARIABLE RATE MORTGAGE (VRM) -- What Is a VRM? -- Determination of Interest Expense and Principal Remaining under Adjustable Rate Mortgages -- Computational Problems: Mortaase Mathematics -- More Computational Problems -- Theoretical Problems: Mortgage Mathematics -- SECTION FIVE CAPITAL BUDGETING -- CHAPTER SEVENTEEN CAPITAL BUDGETING AND LONG-TERM RESOURCE ALLOCATION -- Required Inputs for the Capital Budaetina Decision -- Determination of the Effect of Working Capital on Cash Flows -- Estimation of the Life of the Project -- Estimation of the Initial Investment -- Estimation of Net Income -- Estimation of Cash Flow -- CHAPTER EIGHTEEN THE COST OF CAPITAL -- The Cost of Debt -- The Cost of Preferred Stock -- The Cost of Equity -- Note -- CHAPTER NINETEEN CAPITAL BUDGETING TECHNIQUES -- Accounting Rate of Return (ARR) Method -- The Payback Period Method -- The Net Present Value (NPV) Method -- The Internal Rate of Return -- Problems with the Internal Rate of Return -- Other Capital Budgeting Methods -- CHAPTER TWENTY RELATIONSHIP BETWEEN PAYBACK PERIOD AND NET PRESENT VALUE METHODS -- Payback and NPV Relationship for Projects with Level Cash Flows -- Payback and NPV Relationship for Projects with Level Cash Flows but Differing Discount Rates -- Payback and NPV Relationship for Projects with Uneven Cash Flows -- Summary.

CHAPTER TWENTY-ONE A SIMPLE RULE FOR CONFLICT RESOLUTION FOR MUTUALLY EXCLUSIVE PROJECTS -- The Net Present Value Rate of Return Defined -- NPV and Rate of Return Ranking Conflicts and Resolution -- The Multiple IRR Problem -- Mutually Exclusive Projects of the Same Scale, but Different Timing of Cash Flows -- Mutually Exclusive Project Ranking of Different Scale -- Variable Interest Rate Problem -- Unequal Lives -- Computational Problems: Capital Budgeting -- SECTION SIX TEACHING TIPS -- CHAPTER TWENTY-TWO TEACHING TIPS -- Sum of Arithmetic and Geometric Series -- Applications -- Concluding Remarks -- Appendix -- Note -- Suggested Readings -- Index.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.