FINANCIAL MATHEMATICS

FINANCIAL MATHEMATICS

VALUE OF MONEY OVER TIME

VALUE OF MONEY OVER TIME

money has different value over time

it is not the same to receive money in a year to receive it today

inflation

makes money devalue

money has the ability to generate more money

it's a change in the amount of money in a while

It can manifest through interest

Topic principal

INTEREST RATE

INTEREST RATE

The interest rate (i) is the relationship between what is received from interest (I) and the amount borrowed or invested (P)

The interest rate (i) is equal to the relationship between interest (I9 and the value deposited

in conclusion, the interest is a lease paid for money borrowed during a certain time

the measure of the increase in money in a given time

that is to say that interest is the measure or manifestation of the value of money in time

FLUJO DE CAJA

FLUJO DE CAJA

es un registro gráfico de entradas y salidas del dinero durante el tiempo que dura la operación financiera

This concept is relative since the expectations of each person's money performance is different.

It is a tool for the definition, interpretation and analysis of financial problems

It is a graphic record of incoming and outgoing money during the duration of the financial operation

EQUIVALENCE

EQUIVALENCE

Subtopic

process where monies located in different periods are transferred to a common date or period.

flujo de caja

It is a tool for the definition, interpretation and analysis of financial problems

It is a tool for the definition, interpretation and analysis of financial problems

i=I/P

INTEREST

INTEREST

preparado por : Emmanuel paternina Rios