Financial calculations

Basic Financial Concepts

Decision making

Polynomial: they are 2 or more algebraic expressions (with different literal part) that are being added or subtracted

Completos

Ordenados

Homogenios

A polynomial is complete with respect to a letter when it contains all the consecutive elements of a letter from the highest to the lowest

When the exponents are ordered they can be in ascending or descending order

When the result of the sum of the exponents of each term is the same

Operations with monomials

addition and subtraction of monomials to be able to subtract or add monomials these must be like terms, we will only add the numerical part. If the terms are not similar, they cannot be added or subtracted

Multiplication and division of monomials: we must treat the numerical part and the literal part separately. We must take special care with the letters that are allowed in the terms because the exponents will be added.
Division: First we will divide the numerical part and in the literal part the exponents of the letters that are repeated are subtracted

Empowerment of monomials: First we will do the numerical part by applying the power and multiplying the literal part

Radication of monomials, we will obtain the corresponding root for the numerical part and divide the exponent of each letter by the degree of the radical

Operaciones de polinomios

Addition of polynomials: we can add or subtract only similar terms, everything else will remain the same

Multiplication of polynomials: multiply all the terms between them, the first polynomial by the second polynomial Whenever the numerical part is multiplied the literal part is added the exponents of the letters that are repeated

Productos notables

Square of a binomial: the square of the sum of 2 terms is equal to the square of two terms plus twice the product of both terms plus the square of the second term

The cube of a binomial is equal to the cube of the first term plus triple the square of the first term times the second term plus three times the first term times the square of the second term plus the cube of the second term.

Financial analysis

Work capital Management

An equation is an equality between 2 quantities or expressions for example: a = b; a + b = c; (ad -b) / e = f an equation with an unknown is one that only has one letter (unknown quantity because we do not yet know how much it is worth, unlike numbers); it does not matter how many times the letter is repeated as long as it is only the same letter

Solving equations with grouping signs: first we must suppress the grouping signs considering the law of signs, and if there are several groups, we develop the groupings from the inside out

Solving equations with indicated products: first the indicated products are carried out and then the general procedure is followed

Problem solving must be done mathematically, and then perform the corresponding operations to find the value of the unknown