Question 1163314: Whats the potential use of equations and algebraic methods to solve business problems in banking industry?
Found 2 solutions by Edwin McCravy, ikleyn:
Answer by Edwin McCravy(20056)   (Show Source):
You can put this solution on YOUR website!
None nowadays, because all the algebraic equations are stored in the computer
programs and only the computer programs are used today. But before computers,
the equations were used to calculate interest on accounts, annuities, payments, etc.
The idea that there was a time when nothing happened unless a human being was
commanded to make it happen is something people today find amazing.
The reason you have to take algebra is because you might become one of those
people who creates computer programs for the banking industry, or perhaps an
engineer.
Edwin
Answer by ikleyn(52784)  (Show Source):
You can put this solution on YOUR website! .
Banking industry is counting money and finding optimal ways to invest money.
Counting money is based on solving equations, manually or using computers.
Finding optimal investment strategies is based on solving equations, again.
Manually ot using computers.
Those who know respective mathematical models and especially those who are able to create new and/or advanced
mathematical/computational/computer models, may have huge benefits working in banking industry.
They may get the uppers positions in this industry, and the entire progress in this industry may depend on such people.
Even for those banker workers, who do not create new mathematical/computational/computer models
(they are the middle level/class workers in this industry) it is useful to understand how these models works.
It is a part of their qualification.
For all other people knowledge of this subject is a part of their culture.
It is just hundreds and thousand years people count money.
Nethertheless, revolutions happens from time to time even in this traditional area.
Let me give you one interesting example.
In 40-ies and 50-ies of the last century, a new method was developed in Math to solve optimization problems:
the Linear programming method and other similar methods around it.
This mathematical achievement made a REVOLUTION in the economy managing, and in banking industry, too.
On Linear programming, you may read from this Wikipedia article
https://en.wikipedia.org/wiki/Linear_programming
https://en.wikipedia.org/wiki/Linear_programming
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