Unit 1: Introduction to Financial Mathematics
- Definition and Importance
- Overview of financial mathematics in real life
- Role in personal finance, business, and economics
- Mathematical tools used in finance
- Basic Terminology
- Principal, Interest, Rate of Interest
- Time Period, Amount, Annuity
- Simple and Compound Interest
Unit 2: Simple and Compound Interest
- Simple Interest
- Formula: SI=P×R×T100SI = \frac{P \times R \times T}{100}SI=100P×R×T
- Applications and Problems
- Comparison with Compound Interest
- Compound Interest
- Formula: A=P(1+R100)TA = P \left(1 + \frac{R}{100}\right)^TA=P(1+100R)T
- Derivation and Explanation
- Effective Rate of Interest
- Compounded Annually, Semi-Annually, Quarterly, Monthly
- Concepts of Periodic Compounding
- Formula Adjustments for Compounding Frequency
- Applications of Compound Interest
- Population Growth
- Depreciation and Appreciation of Assets
Unit 3: Annuities and Installments
- Definition and Types of Annuities
- Ordinary Annuity
- Annuity Due
- Perpetuity
- Present Value and Future Value of Annuities
- Formula and Derivations
- Applications in Real Life (EMIs, Pension Plans)
- Installments
- Equated Monthly Installments (EMI) Calculation
- Loan Amortization Schedule
Unit 4: Taxation and Financial Decision Making
- Income Tax Basics
- Taxable Income and Exemptions
- Slabs and Calculations
- Goods and Services Tax (GST)
- Concept and Calculation
- Application of GST in Billing
- Financial Decision Making
- Cost-Benefit Analysis
- Investment Decisions (SIP, Mutual Funds)
Unit 5: Stock Market Mathematics
- Shares and Dividends
- Basics of Stocks and Share Market
- Types of Shares: Equity and Preference
- Dividend Yield and Rate
- Profit and Loss in Stock Investments
- Concept of Market Value, Face Value
- Calculations of Profit or Loss in Share Trading
- Introduction to Index Numbers
- Sensex, Nifty, and their Mathematical Representation
Unit 6: Applications in Real Life
- Budgeting and Saving
- Importance of Budgeting
- Tools for Saving and Managing Personal Finance
- Investment Planning
- Fixed Deposits, Recurring Deposits
- Mutual Funds, Bonds, and Securities
- Case Studies
- Solving Real-Life Problems using Financial Mathematics
- Examples: Loan Repayment, Investment Growth
Assessment Pattern
- Internal Assessment (20 Marks)
- Assignments (Real-life Applications)
- Group Discussions or Presentations
- Project Work (e.g., Preparing a Budget or Investment Plan)
- Theory Examination (80 Marks)
- Objective Questions: 10 Marks
- Short-Answer Questions: 30 Marks
- Long-Answer Questions and Case Studies: 40 Marks
This structure ensures conceptual clarity, practical application, and alignment with CBSE standards while fostering financial literacy among students.
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