Mathematics of Finance, algebraic solution of simultaneous linear equations (Gauss–Jordan elimination method), basic types of functions (linear functions, quadratic functions, polynomial functions), exponential and logarithmic functions, differentiation (derivative of a function, second derivative, partial differentiation, rules of differentiation), economic variables and functions (total and average income, total and average cost, laws of supply and demand, profit, elasticity, marginal revenue and cost functions), optimization of economic functions, Lagrange multipliers, integrals (indefinite integral, definite integral, economic applications of integrals), applications of integration to the theory of probability and statistics (probability distributions of continuous random variables – uniform, exponential and normal distribution).
The main objective of this course is to familiarize students with the mathematical tools needed to solve business application problems. Mathematical concepts that at first appear to be abstract are understood through their applications, while key elements of mathematical theory and relevant applications, together with their solutions, are presented, covering different areas of business administration.
On completion of this course students will be able to:
