Laplace’s transformation is an important chapter of Mathematical Analysis. At present it is widely used in various problems of signal theory, physics, mechanics, electro – techniques and economics. Laplace’s transformation is the simplest and most economical method that leads directly to the required resolution of many of the various technical problems that arise when solving them. In this paper we will become acquainted with the basic concepts of operational mathematics and its application in economy. Not many analytic solutions exist for present discounted value problems but by using Laplace transform we can deduce some of the closed form solutions quite easily. There will be shown the connection between the current discounted value in finance and Laplace transformation.
A detailed study of the financial concepts fundamentals certainly is to give some idea on the concepts of finance. The investment world can be confusing for the investors. The investors need to go through some finance theories which will help them to understand the market behavior in a better way. There are a number of factors that influence the functioning of the investment market. The individual investor’s choice of investment may vary from one person to another. While some investors go for investing in the risky securities, some investors tend to play safe in the market by investing in the less risky environment.
The finance theory concept including studying the various ways by which businesses and individuals raise money, as well as how money are allocated to projects while considering the associated with them risk factors.