The Monthly Mathematical Model for Financial Planning
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Abstract
The objectives of this research are: 1) to create a monthly mathematical model for financial planning consisting of the monthly savings, the interest rate per year, the compounding times per year and the times of savings and 2) to demonstrate the returns calculated from the monthly mathematical model. The results show that: 1) There are 4 prototypes of the monthly mathematical model, i.e. the monthly model with the constant monthly savings and the interest rate per year; the monthly model with the constant monthly savings and the inconstant interest rate per year; the monthly model with the inconstant monthly savings and the constant interest rate per year; and the monthly model with the inconstant monthly savings and the interest rate per year. Those 4 prototypes are obtained and proved for the correctness by using mathematical induction. 2) The returns at the end of the year calculated from the monthly mathematical model are obtained for setting the initial values. It is the example of savings simulations for people who want to plan their finance for the future. They can compare the returns with the different types of savings which help them receive the suitable returns for particular person.
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References
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