Financial Mathematics Application Aplicación de las Matemáticas Financieras

Abstract

The present essay aims to analyze The Application of Financial Mathematics; To do this, support was sought on different websites that had extensive material that were a key piece in our research. The methodology that we applied was to explain step by step each of the topics that we believed appropriate and that would respond to the title of our essay; First, the subject of simple financial operations is discussed, which is divided into two parts that are capitalization and simple discounts, and compounding and capitalization, in this subject a brief meaning of them was given. Then we continue with complex financial operations in which, when studying financial mathematics, we find income, a tool within the accounting field that reflects the profit caused by different categories; Income is classified into two types, constants and variables, where the latter in turn are subdivided into two classes of progressions, arithmetic and geometric. Then we start with the amortization of credits, which in a few words is a payment program that is designed to settle a credit; In this accounting process, the so-called amortization table is necessary, where it is detailed how the credit conditions are applied during the payment of the same. And finally, we have the subject of cost depreciation, where we know that an asset when used in the company's operations to generate income suffers evident wear and tear, and depreciation seeks to recognize this wear and tear. By way of closing, we can mention that the reason for being of the accounting profession lies in the correct decision-making, it exists in order to guide its clients along the path of benefits, avoiding possible losses, and it is in that moment where financial mathematics is going to be key with the different tools and study topics that it provides to accounting.