This course brings together mathematics and finance. In the Basic Algebra Skills chapter we discuss topics such as linear and quadratic functions, and in the next chapter exponential and logarithmic functions. The exponential functions are important to calculate future values of savings forms without additional contributions. The logarithms are useful when calculating a present value (the value of an amount calculated back to the initial contribution at a fixed interest rate).

In the next chapter we discuss sequences and series, in particular geometric series. These are used to calculate future values of savings forms with periodic contributions, in particular annuities.

This is followed by a chapter on optimization: the minimum values of various cost functions are calculated by differentiation. The chapter begins with an introduction to differentiation. Tangents to graphs are discussed in the context of approximations of functions near a point; these play a role in marginal cost functions. As an application thereof, we discuss the optimization of order quantities.

In the final chapter we discuss five different ways to assess an investment or investment plan. Of these, two methods are from accounting: the accounting payback period (APP) and the accounting rate of return (ARR), and three are economic: the discounted payback period (DPP), the net present value (NPV) and the internal rate of return (IRR).

The order of the chapters is fixed to a certain extent, namely

• the chapter Basic Algebra Skills should come first, if it is as yet unfamiliar,
• the chapter Exponential and Logarithmic Functions should precede the chapter Sequences and Series (because of the financial concepts),
• the Assessing Investments chapter uses financial concepts such as present value and future value from the Exponential and Logarithmic functions chapter as well as growth rate (comparable to the discount rate for investments) from the Sequences and Series, and should therefore preferably come after these two.

This means that the Optimization chapter does not necessarily have to be treated as the penultimate chapter.

Other parts of this introduction include an overview of the required prior knowledge for this course and rounding of real numbers.