College Mathematics/Financial Mathematics

Financial Mathematics

Objectives and Skills

Objectives and skills for the financial mathematics portion of CLEP College Mathematics include:

• Percents, percent change, markups, discounts, taxes, profit, and loss
• Interest: simple, compound, continuous interest, effective interest rate, effective annual yield or annual percentage rate (APR)
• Present value and future value
• Applications

Readings

1. Wikipedia: Percentage
2. Wikipedia: Interest

Activities

1. Review the following MathsIsFun resources and complete the questions at the bottom of each page:
   • Percents
   1. Percentages
   2. Percentage Difference
   3. Percentage Calculator
   • Interest
   1. Interest (An Introduction)
   2. Compound Interest
   • Present value
   1. Present Value
   2. Net Present Value