Do you like mathematics ?

What do you think of math ?

  • I love it

    Votes: 24 35.8%
  • I like it a little but not much

    Votes: 17 25.4%
  • I'm not interested

    Votes: 2 3.0%
  • I hate it

    Votes: 22 32.8%
  • I have really no idea

    Votes: 1 1.5%
  • Other

    Votes: 1 1.5%

  • Total voters
    67
Endymion said:
That's where the advanced math comes in (I try to give a brief summary, but you can ignore this paragraph). We use something from statistics called regression analysis to figure out what the equation of the line is (is the equation y = 2+x? y=sqrt(9-x^2)? y = 1/(x-3)+3? etc.). Then we use calculus. We do something called "taking the derivative of the equation" -- which gives us another equation. Once we have that equation, we use that to solve the problem.

Endymion, are the examples you outlined ‘real’ calculus, or ‘business’ calculus? I’ve never been quite able to figure out what the difference is between the two. Here in California, ‘real’ calculus is a tough, 3-semester, 15-unit sequence. Once it is completed, the unfortunate victim may then progress to linear algebra. ‘Business’ calculus, on the other hand, is some sort of Mickey Mouse 2-semester, 6-unit sequence, which is an end unto itself—you go no further after it is completed. I know an MBA who took 2 semesters of ‘business calculus, yet can’t even explain what a derivative is. So what is this mysterious ‘business’ calculus? I’m guessing that it doesn’t involve curvilinear functions at all, but rather involves linear functions which have an abrupt ‘bend’ in then, if you get my meaning. Maybe it’s more like an advanced applied statistics class? :confused: :dunno:
 
I really like it because it make my brain busy and i like the way it works up in my mind to prove that im alive! heh.. jk! but yeah I like to do math. its fun and its kinda like puzzle.. sometime i like to challenge myself to answer the question right away without counting or figure out..
 
Endymion said:
I'm glad to help! I was worried I didn't do a very good job of explaining the concepts, but it looks like everything turned out well.

Math is definitely applicable to real estate. In finance, you'll hear the term "Time Value of Money" which refers to a certain equation. Future = Present * (1+r)^t. Essentially, the Time Value of Money equation tells you how much money you'll have if you invest your money at "r" percent for t years. If you invest $100 for 2 years at 10% (you calculate it as .10 instead of 10%), you'll have $121 dollars.

Lets say you put a hundred thousand dollars down on a house. Let's say that the house value will increase 10% every year. You want to sell the house in five years. What's the value when you sell the house in five years? $161,051.

Simple, right?

Now let's say you have two possible houses. One is in an area that averages 10% growth. The other averages 8% growth. At first, it seems smart to take the house with 10%. But let's make the problem more realistic. Let's say you intend to charge rent. The house that grows 10% is in a part of town full of college students who play landlords for the cheapest deal, so you can only charge $750 rent a month. The house that grows 8% is in a little different area, you can raise your price to $800 a month. (Though if you were charging that little rent for a full five-bedroom house, you'd have to be nuts!)

Now, which house do you invest your $100,000 in (assuming no complicating factors, assuming annual interest, and assuming you reinvest the rent you earn immediately into something that gives you the same interest rate)?

To do this, we have to rearrange the Time Value of Money equation and add a bunch of things to it. The equation considers a couple things -- payments in a year, present value, future value, time of investment, and rate. (You can even complicate it more with something called Net Present Value, but we don't need to go into that)

House #1: (10%, $750): $200,000 (Future value)
House #2: (8%, $800): $203,000 (Future value)

Obviously, you're going to want to invest in house #2. We can change that and adjust the equations to figure out if you want to keep your condo or relocate.

By the way, this stuff I just showed isn't calculus or statistics, it's a different part that deals with financial mathematics. Though finance and real estate definitely use calculus and more. That's why the posh empty-suits are making the big bucks; they took those courses and they understand the basics (or how to interpret the results) of the calculations they're using, even if they have computer applications doing the work for them. In fact, if you go to a business school worth its salt for a bachelor's degree (one that can get you a good entry-level corporate job), you're required to take statistics and some sort of class that covers calculus, even if only in passing.

You might be interested in this Wikipedia page on the Time Value of Money: http://en.wikipedia.org/wiki/Time_value_of_money


Thank u very much Endymion for this good posting !

At this point, I do not intend to rent it out at all but
I was trying to figure out whether I should stay put at
my own home "forever" and/or sell it to make a profit and
then move to another home...
 
prefer complexity of linear algerba. I never take business math. Calculus requires algerba experiences and knowledegs before you would take course. Without algebra, you can't understand Calculus.

With Rational Zero Theorem and Zero of Polynomials, I always love to find many zeros in complex polynomials. These maths are fun and puzzle.

Algerba can't solve the complexity physics as Calculus can do.
 
The highest I done is Combinatorics.

It was a good adventure up there :)

Richard
 
Nope, have not try that Combinatorics yet, That resembles matrix numbers. I did with Matrix in college before, but I forget long time ago! I wish I know. Sorry. GOOD LUCK!
 
Levonian said:
Endymion, are the examples you outlined ‘real’ calculus, or ‘business’ calculus? I’ve never been quite able to figure out what the difference is between the two. Here in California, ‘real’ calculus is a tough, 3-semester, 15-unit sequence. Once it is completed, the unfortunate victim may then progress to linear algebra. ‘Business’ calculus, on the other hand, is some sort of Mickey Mouse 2-semester, 6-unit sequence, which is an end unto itself—you go no further after it is completed. I know an MBA who took 2 semesters of ‘business calculus, yet can’t even explain what a derivative is. So what is this mysterious ‘business’ calculus? I’m guessing that it doesn’t involve curvilinear functions at all, but rather involves linear functions which have an abrupt ‘bend’ in then, if you get my meaning. Maybe it’s more like an advanced applied statistics class? :confused: :dunno:

LOL. I have to agree, actually. In business, math is definitely encouraged, but for some reason they don't do it as much as they ought to. If you want to go to a grad program for an Economics degree, you usually need up to Calculus 2 or 3. But if you're a Finance major applying for an MBA program, you're usually just okay with some sort of business calculus that covers basic differentiation and integration. Finance and Economics go hand-in-hand! I'd think that Finance folks should have higher mathematics. They get it later on -- if you have a Doctor of Business Administration degree, you really better know how to crunch numbers.

You know what's interesting though? There was an article in some Finance magazine a while back about how people with mathematical abilities are in very high demand.

The first example I gave was really a mix of Calc 1 and Statistics.
 
I did alegbra way back in middle school and got a 100 on the final. I was surprised when I found that some people needed to take it in college. :eek2: I loved calculus in high school. :mrgreen: Last winter I did a class about complex linear alegbra where they showed us how the Fourier transform worked. :thumb: The class was taught by Roger Easton Jr, the son of the GPS developer. I also love polyhedra and fractals.
 
I got an ‘A’ in honors statistics, but not without a lot of skull sweat. For one of my semester projects I demonstrated mathematically that men lie about the size of their penis. That may seem like a no-brainer, but most people would probably be surprised at the results I obtained. I discovered that men do lie about the size of their whackers, but not by much. The degree of exaggeration is not as great as most people would probably think it is. :shock:
 
Someone else and I had a little arguement today
about the numbers...

For example, I have to pay maintenance fees
for $380 every month but
they will increase three percent (3%) every year.

Next year it will be about $391.14.
Three percent (3%)
out of $380 equal to $11.40 plus 380 = $391.14
However....
We tried to figure out 25 years later it will be
about $500 every month.

Correct or Wrong ?
 
Endymion said:
Finance and Economics go hand-in-hand! I'd think that Finance folks should have higher mathematics. They get it later on -- if you have a Doctor of Business Administration degree, you really better know how to crunch numbers.

Yes, I already knew that. This guy is my first cousin. He’s the smartest one in the family—scored in the top one-half of one percent on his SAT’s. I remember him talking about all the math classes he had to take as an undergrad—made my blood curdle. :Ohno:
 
Y said:
Someone else and I had a little arguement today
about the numbers...

For example, I have to pay maintenance fees
for $380 every month but
they will increase three percent (3%) every year.

Next year it will be about $391.14.
Three percent (3%)
out of $380 equal to $11.40 plus 380 = $391.14
However....
We tried to figure out 25 years later it will be
about $500 every month.

Correct or Wrong ?

Wrong. It will be 795.63....

Future value = present value x ( 1 + interest rate in %) ^ Number of years
 
Levonian said:
I got an ‘A’ in honors statistics, but not without a lot of skull sweat. For one of my semester projects I demonstrated mathematically that men lie about the size of their penis. That may seem like a no-brainer, but most people would probably be surprised at the results I obtained. I discovered that men do lie about the size of their whackers, but not by much. The degree of exaggeration is not as great as most people would probably think it is. :shock:

your link expired. can you post it again? i wonder what it has to do with statistics....
 
Nesmuth said:
The highest I done is Combinatorics.

It was a good adventure up there :)

Richard

Only highest I have done is Calculus. I heartly dislikes Statistics. When it comes with word problems, may God have mercy on me.
 
kalboy said:
Wrong. It will be 795.63....

Future value = present value x ( 1 + interest rate in %) ^ Number of years


Kalboy, Thank u so much for the formula ...

Since my calculator does NOT have ^,
then what should I do ?
 
Y said:
Kalboy, Thank u so much for the formula ...

Since my calculator does NOT have ^,
then what should I do ?

The ^ represents exponents (as in X to the Nth power). It should look something like this Xn (with the n higher than the X but the n smaller in size) on your calculator. Most decent ones have that...unless it is a very simple one.
 
Back
Top