Financial Mathematics (Sem 5, BBA Nagpur Univ)

We have great pleasure in presenting First edition “Financial Mathematics” written for students of UG courses. The related matters are written in a simple and easily understandable.

This volume is an attempt to provide the students with thorough understanding of Financial Mathematics. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.

Contents –

Unit – 1 Financial Statement and Analysis – I
Introduction
Meaning of Financial Statements
Objectives of Financial Statements
Types of Financial Statement
Tools for Analysis
Common Size Statement
Comparative Statement
Trend Analysis
Review Questions

Unit – 2 Financial Statement and Analysis – II
Introduction
Ratio Analysis
Meaning of Ratio Analysis
Objectives of Ratio Analysis
Advantages of Ratio Analysis
Limitations of Ratio Analysis
Types of Ratios
Profitability Ratios
Efficiency Ratios
Turnover Ratios
Financial Ratios
Liquidity Ratios
Review Questions

Unit – 3 Interest and Time Value of Money
Introduction
Calculations of Present Value
Future Value and Annuities
Simple Interest
Compound Interest
Nominal Interest
Real Interest
Preparation of Amortization
EMI Schedules
Review Questions

Unit – 4 Capital Budgeting
Introduction
Meaning of Capital Budgeting
Objectives of Capital Budgeting
Tools of Capital Budgeting
ARR
Payback Period
NPV
IRR
PI (Calculations, Merits and Demerits)
Review Questions