Teaching about the importance of financial mathematics in economics and accounting // Tools necessary for understanding

in #steemiteducation2 years ago (edited)

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Financial mathematics has a large number of applications in all economic activities where there is a flow and exchange of goods and services, exchange of currency, payment of money from companies to their employees, in short, a fundamental importance in the various tasks of our daily life where an interaction between people and companies converges.

For all of the above, it is necessary that the people who make the decision to enter the studies of economics, accounting or related professions have a thorough knowledge of financial mathematics and that leads to a thorough understanding of certain processes that occur within the companies and even in our daily lives, for this it is very important that the entrant to acquire this type of knowledge understand the implications that "the variations of the value of money over time".

As with all economic sciences, financial mathematics is committed to providing the exchange problems with the mathematical tools necessary to evaluate the equivalence of the value of the currency of each country in different times and circumstances in the easiest way possible, that is, taking into account the topics with a study and analysis with the least possible mathematical complexity as long as the subject of study allows it. All this leads us to think then that to that same proportion of commitment and delivery that financial mathematics have to provide us with solutions to different problems of an economic nature, in that same delivery must be our commitment to understand it, to find the mechanisms of application of mathematics and be able to take them to the application of finance, either from our own company or in our daily activities of money exchange.

What tools do we need in the understanding of financial mathematics?

  • Teaching examples: We must possess a capacity whose imagination leads us to pose problems of a didactic nature, all with the intention that the study of financial mathematics is striking, entertaining and applicable in various branches, for this the apprentice must find the solution to the problems step by step, using as tools financial mathematics books, manual calculator, manual calculations, Excel, always looking for these exercises have within their statements an implication both in the personal life of each individual and in life of the business of a company.

  • Electronic spreadsheets: Once the theoretical and practical understanding of financial mathematics is achieved, it is possible to venture into the realization of the associated calculations through spreadsheets, where the same calculations can be made quickly. to manual. However, it is necessary to emphasize the need to understand the approach of the problems and the logic for its solution, because with the same speed with which the correct solution can be obtained to complex calculations using the electronic spreadsheets, mistakes can be made garrafales, caused by a bad approach or a poor understanding of the logic of financial problems.

Conclusion

Mathematics has always contributed its tools and developments in different branches of knowledge, be they natural sciences, economics, sociology, humanities, among others, but what refers to finance, mathematics has found a practical and simple way to put at the service of humanity its equations in a practical way in solving the problems that within the economy of accounting and finance refers.

Therefore it is very important to know the fundamentals of having the knowledge of financial mathematics for the entrepreneurship of our businesses, the development we have in the workplace, and even to alleviate the inflationary symptoms of our daily lives.

I hope this publication is useful for you.

Greetings.

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Note: The first image was created with the help of Microsoft Power Point edition.

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