Interest Rate Calculators
Overview of interest rate calculators for asset valuation, retirement savings, installment loans and more.
Algebra
Financial algebra is centered around the idea that money produces more of its kind by the application of compound interest.
Derivatives
Concepts and formulas for the pricing of financial derivatives.
Calculus
Derivations and methods of financial calculus.

Financial Algebra and Computations

This website focuses on select topics in financial algebra, financial calculus, numerical methods, derivatives pricing and related computations.

Algebra

The algebra section covers topics like the calculation of annuities and compound interest including mathematical derivations of some important formulas. For instance, it shows how compound interest converges to an exponential function as compounding intervals become infinitesimally small.

\lim_{m \to \infty}(1 + \frac{r}{m})^{m \cdot \tau}= exp(r \cdot \tau)

Interest Rate Calculators

The interest calculator section of this blog provides calculator forms for various compound interest applications. The calculators perform valuations, assess investment returns, and compute parameters for financial contracts. Moreover, they are useful for educational purposes since each calculator page includes explanations on the underlying mathematics and financial economics.

For example, the return on investment calculator page explains why we assume exponential growth in order to compute an annualized return on investment.

Published: October 30, 2021
Updated: November 26, 2022

Financial Algebra
Financial Algebra