1.

SIMPLE DISCONTINUOUS FINANCIAL SYSTEM

2. IMPORTANCE OF FINANCIAL MATHEMATICS
3. FINANCIAL MATHEMATICS SIMPLE INTEREST
4. TIME – CAPITAL – AMOUNT – V CURRENT PRICE - DISCOUNT

FINANCE SYSTEM
The financial system is the set of institutions (financial entities), media (financial assets) and
markets that make it possible for the savings (idle money) of economic agents to end up in the
hands of credit seekers. Thus channeling savings and investment in order to achieve the
economic growth of the country (GDP). Therefore, the financial system serves to mediate
between those who have excess money and want to lend it, and those who need financing.
The financial system has a very great importance within the economy because it generates more
income for those who lend and also encourages the creation of companies, something essential
for the economy.
IMPORTANCE OF FINANCIAL MATHEMATICS
It is a derivation of applied mathematics that studies the time value of money, combining
capital, rate and time to obtain a return or interest, through evaluation methods that allow
investment decisions to be made.
It is multidisciplinary related to Accounting, since it provides at precise or specific times,
reasoned information, based on technical records, of the operations carried out by a private or
public entity, which allows making the most accurate decision at the time of carrying out a
transaction. investment.
With the Law, since the laws regulate sales, financial instruments, land and sea transportation,
insurance, brokerage, guarantees and shipment of merchandise, the ownership of goods, the way
in which they can be acquired, purchase and sale contracts. , mortgages, loans at interest; with
the economy, since it offers the possibility of determining the markets in which a business or
company could obtain greater economic benefits.
With Political Science, since political science studies and solves economic problems that have
to do with society, where companies and institutions exist in the hands of governments.
Financial mathematics helps this discipline in making decisions regarding investments, budgets,
economic adjustments and negotiations that benefit the entire population.
With Engineering, which controls production costs in the manufacturing process, which directly
influences the determination of the cost and depreciation of industrial production equipment.
With IT, which allows optimizing manual procedures related to economic movements,
investments and negotiations.
With Sociology, financial mathematics works with investments and provides sociology with the
necessary tools for companies to produce more and better economic benefits that allow a better
quality of life for society and with finance, a discipline that works with financial assets or
securities and include bonds, stocks and loans granted by financial institutions, which are part of
the fundamental elements of financial mathematics.
Financial mathematics has an eminently practical application; its study is closely linked to the
resolution of problems and exercises very similar to those of daily life, in the business world.
Money and finances are inseparable.
FINANCIAL MATHEMATICS SIMPLE INTEREST
It is the interest or benefit obtained from an investment of a company that sells or it can be
financial or capital when the interests (which can be high or low, depending on the problem
posed) produced during each period of time that the investment lasts. Investment is due only to
the initial capital, since the benefits or interest are withdrawn at the expiration of each of the
periods. Time periods can be years, quarters, months, weeks, days or any duration. That is, the
interest is applied to the initial amount, the interest is not added to the productive capital.
SIMPLE INTEREST: It is the one that provides capital without adding past due interest, in
other words it is the one that accrues capital without taking into account the previous interests.

SIMPLE AMOUNT (M): It is defined as the accumulated value of capital. It is the sum of
capital plus interest, its equation is: M = C + I
CAPITAL (C): It is also called current or present value of money, initial investment, treasury.
INTEREST RATE (i): It is the price of money that is normally indicated as a percentage (%), it
is a commercial operation where capital or any asset is used.
INTEREST RATE: Simple and compound interest
TERM OR TIME: It is what is normally specified in the document or contract, it can be any unit
of time; days, months, years, etc.
DISCOUNT: It is the reduction made to an amount to be paid before its maturity. It is the
advance collection of a value that matures in the future.