Theory of Finance
The value of money is studied under the following headings:
1. Linear growth
- simple interest and simple discount.
- using straight line graphs for cost-volume analysis.
- using systems of linear equations and the intersection of straight line graphs for cost/revenue-volume analysis, focussing on break-even; demand and supply, focussing on market equilibrium.
- linear programming for optimisation.
2. Exponential Growth
- Compound Interest in present and future values.
3. Serial Growth
- Simple and Complex Annuities.
- Business Applications of differentiation.
- Integral calculus
- The area between a curve and the horizontal axis.
Tutorial group work
- The area between two curves.
- Linear depreciation - straight line method.
- Exponential depreciation - diminishing balance method.
- Serial depreciation - sinking funds