Financial Mathematics is the application of mathematical methods to financial problems. It draws on tools from probability, statistics, and economic theory. This unit standard will allow one to Use mathematics to investigate and monitor the financial aspects of personal, business, national and international issues.
This unit standard will be useful to people who aim to achieve recognition at some level in Further Education and Training or to meet the Fundamental requirement of a wide range of qualifications registered on the National Qualifications Framework.
People credited with this unit standard are able to:
Use mathematics to plan and control financial instruments. Use simple and compound interest. Investigate various aspects of costs and revenue including marginal costs, marginal revenue and optimisation of profit. And use mathematics to debate aspects of the national and global economy.
Statistics and probability are sections of mathematics that deal with data collection and analysis. Probability is the study of chance and is a very fundamental subject that we apply in everyday living, while statistics is more concerned with how we handle data using different analysis techniques and collection methods.
The essential purposes of the mathematical literacy requirement are that, as the learner progresses with confidence through the levels, the learner will grow in the following areas:
A confident, insightful use of mathematics in the management of the needs of everyday living to become a self-managing person. An understanding of mathematical applications that provides insight into the learner`s present and future occupational experiences `and so develop into a contributing worker. The ability to voice a critical sensitivity to the role of mathematics in a democratic society and so become a participating citizen.
