Mathematics is a science that we can easily find in everyday life. The science of mathematics has so many benefits both in general and specifically. In general mathematics is used in commerce and carpentry. In addition, mathematics is a dynamic and flexible science so that it can keep up with the times, like a computer that uses mathematics as a programming language.
So there are so many benefits of mathematics, especially regarding finance. For instance the 30 60 90 triangle formula that can be used in everyday life.
Mathematical Skills In finance
- Algebraic Functions
All functions are calculated algebraically. For example fractional functions, linear functions, quadratic functions and others.
The following types of algebraic functions:
- Linear function: a function where the highest rank is the independent variable = 1. For example: Y= 3X + 2
- Polynomial function: a function that contains many terms in an independent variable.
- Quadratic function: a function where the highest power of the independent variable = 2. For example Y = 3X2 + 2
- Cubic function: a function where the highest power of the independent variable = 3. For example Y = 3X3 + 2
- Algebraic function: a function where the variable is a root or is called irrational.
- Exponential function: a function whose independent variable is the exponent of a real number, for example Y = X2
- Non Algebraic Functions
A function that is not expressed algebraically. This function is usually called transcendence. Such as logarithmic functions, exponential functions, hyperbolic functions, and trigonometric functions.
The following are non-algebraic types:
- Logarithmic function: the inverse function of the exponential function. For example X = a log y
- Exponential function: a function with an independent variable, namely the rank of a constant. For example: f(x) = 3X
- Hyperbolic function : a function with a combination of exponential functions which has derivative and anti-derivative formulas.
- Trigonometry functions: functions where the independent variables are goniometric or have a meaning as a function that maps angle sizes with algebraic numbers. For example Y = Sin 6X . You can use Sin, Cos or Tan.
- Economic Mathematical Functions
Mathematics has so many benefits, one of which is in solving everyday economic problems where mathematics can solve problems such as exchange rates, business economics, micro & macroeconomics, stocks and others.
Mathematics is also in analyzing economic problems such as selling prices, buying, profits and losses. Not only that, but with mathematics you can determine the value of taxes, interest on loans and others. The following is an economic mathematical function:
- Creating alternative business targets to simplify calculations.
- Assist in assessing and managing business plans, both low, medium and large scale.
- Be able to analyze stock exchange investments, also known as the capital market.
Objectives of Mathematical Economics
- Can calculate the amount of tax that has been set in a service or goods.
- Describe and characterize the shape of the demand function of a service or goods and determine the point where the market equilibrium occurs.
- Calculating the subsidy set on a good or service.
- Draw a graph of the supply or demand function and the equilibrium point due to subsidies.
- Calculating the amount of use and satisfaction obtained from someone who uses a service or goods.
Benefits of Learning Mathematics for Life in General
It is undeniable that this life cannot be far from mathematics. Here we will explain some of the benefits of mathematics in life:
- Can practice patience
By studying mathematics it can be useful to practice patience, because to solve problems, you need a long time to solve these math problems. Not only that, in the center you can’t focus, so the results are wrong.
That way it is said that studying mathematics can increase patience. For example, when working on math problems with the formula 30 60 90 triangle formula.
- Help manage finances
The main goal of learning math is that you can count. From counting you can apply it in everyday life such as managing finances between income and expenses.
- Develop logic
By studying mathematics you can develop logic, because to solve a problem you have to think logically without any assumptions.
- Think systematically
If you study mathematics, you will think more systematically. This is because you often practice series and calculations so that your brain will automatically think systematically or regularly. By getting used to it, it will make it easier for you to organize something.
- Can draw conclusions deductively
The purpose of deductively concluding is to see patterns in general so that you used to thinking objectively. By getting used to working on logical math problems, you will get used to thinking rationally.
One of the mathematical formulas that is often used is the 30 60 90 triangle formula and various discussions of mathematical skills used in economics or finance such as algebraic functions (linear, exponential, cubic, polynomial, and exponent) and non-algebraic functions (logarithmic, exponential, trigonometry , and hyperbolic).