A textbook written by A. W. Richeson titled Financial Mathematics says in the preface, "the author assumes that the student has had a minimum preparation of at least one year of high school mathematics. Additional preparatory work in mathematics will, of course, be helpful. However, a review of logarithms, progressions, and the binomial theorem has been included in the text because the author is of the opinion that the inclusion of these topics is desirable for many students who need to review them before beginning a study of financial mathematics," (Richeson v). The sections of this textbook listed in the table of contents show just how many areas of finance high school mathematics applies to. These sections are Uses of Logarithms, Progressions, and Binomial Theorem. Knowing this math can help one in applying this knowledge into one's own life and taking charge of his or her finances more completely and with full understanding. Computation of simple interest, compound interest, annuities, bonds, debts, insurance, and payments are just a few areas that mathematics can help with personal finance.
Along with simple algebraic equations, logarithms and the binomial theorem come into play in the financial world. Richeson says, "The use of logarithms enables us to replace the processes of multiplication and division by simpler processes of addition and subtraction, and to replace the complicated computation of powers and roots by simpler computations in multiplication and division," (Richeson 221). Much of personal finance is long equations that require a lot of computations involving multiplication, division, exponents, and more. If students are able to understand the mechanics of logarithms and the binomial theorem, as well as other aspects of algebra, they will be able to have a more hands-on experience with their own personal finance and discover for themselves what their monetary situation looks like and what it means.