Application of Calculus to Finanace

[anandjammalamadaka]

Application of Calculus to Finance

I am a finance executive . How do we apply differential Calculus

and integral calculus to :

Financial forecasts

life periods of assets

fixation of standards

applying various external & internal parameters


Anand s Jammalamadaka

 

[motai]

You could use the first derivative to figure out the maximum value of a function, thus determining the highest amount of profit. Also second derivatives can be used to find the inflection points where the profit is at the highest slope.

Im not sure about integral calculus, haven't gotten there yet.

 

[anandjammalamadaka]

Thanks for the help
Later I checkedup from Maxima & Minima Chapter of Calculus.


We need to continuously explore to crosslink applications of mathematics
to other areas to prove usefulness of maths.