Preface
The textbook is written according to the Curriculum for secondary Economics and other related secondary schools in Bosnia and Herzegovina. In addition to high school students, it can also serve students as a useful literature for financial mathematics.
The concept of the textbook is different from the previous Financial Mathematics textbooks. Each equation is derived from the appropriate laws between the values studied by financial mathematics, using elementary mathematical operations.
Problems were solved using a pocket (mini) calculator with the accuracy of a maximum of nine decimal units.
The use of pocket calculators with the concept of the textbook eliminates the use of financial, logarithmic and other tables, as obsolete and unnecessary material. Here, with financial mathematics, Spitzer-Foerster’s financial tables were used, whose constants were to eight decimal places up to 100, and for some interest rates up to 300 capitalization periods. Muarieva and K.Bošnjak’s tables were also used, in which the constants were expressed to ten decimal units up to 200 capitalization periods. Some recent releases of financial tables have constants values to 12 and 16 decimal units.
The financial tables were not suitable for problems in which the interest rate is not from the tables’ set of interest rates. In these cases, linear interpolation was used which was quite complex and often did not lead to optimal solutions. Furthermore, the tables were not suitable for conformal (equivalent) interest rates on which, in general, a complex interest is based.
The textbook is written systematically, so it can be used by employees of companies and institutions where a complex interest appears in various forms. It is particularly recommended for bank employees working on deposits, loans, processing and controls of repayment plans.
Textbook’s authors are grateful to all users on remarks and suggestions for its improvement.
The textbook can be purchased on this webpage.