Basic Essential Mathematic Concepts required improving the Investments

Sri Lakshmi Ajit^*
*Correspondence: Sri Lakshmi Ajit, Department of Mathematics, Osmania University, Hyderabad, Telangana, India, Email:

Editorial

An asset or object purchased with the intention of generating income or appreciation is referred to as an invested capital. The term "appreciation" alludes to an asset's value consistently expanding. When a person buys something as an investment, the goal is not to spend it, but to utilize it to build profits over time. The following is a collection of simple mathematics principles and information that will help an individual become a better investor.

The rule of 72

Compound interest, according to Einstein, is the "8th miracle of the universe." The "Law of 72" is a clever trick to determine how long it takes for a sum to double when compounded: divide the interest rate by 72. In eighteen years, money compounded at 4% each year will have doubled. It will double in 8 years if compounded at a rate of 9%. It will double in 41 /2 years if compounded at a rate of 16 percent.

The Pareto Principle

In 1896, Italian economist Vilfredo Pareto observed that just 20% of the people controlled 80% of the land in Italy. It is a business axiom that 80 percent of sales are generated by 20 percent of clients. When physicians had much more power, 80 percent of your recommendations would come from 20% of the referring physicians. Many natural events have been found to follow this pattern empirically.

Fibonacci Numbers

The Fibonacci numbers are named after the Italian mathematician Leonardo of Pisa, afterwards known as Fibonacci, despite being discovered in ancient Indian literature. Originally, it was used to estimate rabbit population increase. Starting with 0 and 1, each number is the sum of the two numbers before it. The Fibonacci sequence has been proven to have several additional uses in nature, including tree branching, artichoke flowering, and pine cone arrangement. It has several more uses in mathematics, economics, and computer science.

The Luhn Algorithm

If you had really wondered how the computer can tell whether your credit card information is valid so quickly? The Luhn Algorithm, named after IBM scientist Hans Peter Luhn, is a "modulus 10" algorithm. It's a checksum algorithm that's used to authenticate a wide range of identifying numbers, including credit cards and numerous government identity numbers. The formula compares a number to the check digit, which is often attached to a partial account number to obtain the full number.

A 40% Chance

First and foremost, the reference is not to situations where probability indicates 40% likelihood. The 2 hole cards are handed face-down to the player in Texas Hold'em, while the five community cards are dealt face-up: three together as the flop, the following card as the turn, and the final card as the river. If a player's hole cards are both of the same suit, such as spades, and two of the three cards on the flip are also spades, there's a 40% chance they'll complete their flush, which consists of five cards of the same suit. A spade on the turn has a 9/47 = 0.191 probability, and a spade on the river has a 9/46 = 0.196 chance. Overall probability: 0.191 + 0.196 = 39.6 percent. This could be referred to as the forecaster of who would be attempting to make a big prediction advice in the future

Pascal’s Wager

Blaise Pascal stated in the 17th century that a sensible person should act as if God exists and believe in God. If God does not exist, such a person will suffer only a limited loss, such as some pleasure, but the benefits from an eternity in Heaven can be endless, and the infinite losses from an eternity in Hell can be avoided. Pascal's Wager is an example of decision-making in the face of uncertainty. It's also a good reminder to stay away from circumstances where the risk of loss is high or even infinite, such as being a general partner, where you're responsible for everything [1-5].

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