Financial mathematics is regarded as a management tool for all economic actors: businesses, households, financial institutions and monetary authorities. In the long term, financial transactions relating to investment involve calculating compound interest and other variables such as present value, principal, term and interest rate. In the case of loans, whether personal or bond-based, an amortisation table is drawn up covering other elements such as the annual instalment, the amortisation, the amortised principal and the outstanding principal. The calculation depends on the repayment terms.
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