ENHANCING BUSINESS FINANCIAL CALCULATIONS WITH PYTHON: A PRACTICAL APPROACH

Аннотация

In the realm of business mathematics, Python can be an invaluable tool for solving various financial problems efficiently and accurately. This document presents a series of Python code examples that address common business math scenarios, including simple interest calculation, compound interest calculation, break-even analysis, present value of future cash flows, and depreciation using the straight-line method. Each problem is addressed with a corresponding Python function, complete with example usage to demonstrate practical applications. These examples illustrate how Python can streamline financial calculations, making complex business math problems more approachable and manageable.

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Anvarjonov, B. (2024). ENHANCING BUSINESS FINANCIAL CALCULATIONS WITH PYTHON: A PRACTICAL APPROACH. Современная наука и исследования, 3(6). извлечено от https://inlibrary.uz/index.php/science-research/article/view/33845
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Аннотация

In the realm of business mathematics, Python can be an invaluable tool for solving various financial problems efficiently and accurately. This document presents a series of Python code examples that address common business math scenarios, including simple interest calculation, compound interest calculation, break-even analysis, present value of future cash flows, and depreciation using the straight-line method. Each problem is addressed with a corresponding Python function, complete with example usage to demonstrate practical applications. These examples illustrate how Python can streamline financial calculations, making complex business math problems more approachable and manageable.


background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

135

ENHANCING BUSINESS FINANCIAL CALCULATIONS WITH PYTHON: A

PRACTICAL APPROACH

Anvarjonov Bunyodbek Baxodirovich

Senior teacher of TMS Institute.

@bunyodbek.anvarjonov@mail.ru

https://doi.org/10.5281/zenodo.11520851

Abstract.

In the realm of business mathematics, Python can be an invaluable tool for

solving various financial problems efficiently and accurately. This document presents a series of
Python code examples that address common business math scenarios, including simple interest
calculation, compound interest calculation, break-even analysis, present value of future cash
flows, and depreciation using the straight-line method.

Each problem is addressed with a corresponding Python function, complete with example

usage to demonstrate practical applications. These examples illustrate how Python can streamline
financial calculations, making complex business math problems more approachable and
manageable.

Keywords:

Business Mathematics, Python Programming, Financial Calculations, Simple

Interest, Compound Interest, Break-Even Analysis, Present Value, Future Cash Flows,
Depreciation, Straight-Line Method, Financial Planning, Investment Analysis, Asset
Management, Tax Planning, Economic Decision-Making.

УЛУЧШЕНИЕ БИЗНЕС-ФИНАНСОВЫХ РАСЧЕТОВ С ПОМОЩЬЮ PYTHON:

ПРАКТИЧЕСКИЙ ПОДХОД

Аннотация.

В области бизнес-математики Python может быть бесценным

инструментом для эффективного и точного решения различных финансовых задач. В
этом документе представлена серия примеров кода Python, которые рассматривают
распространенные математические сценарии бизнеса, включая расчет простых
процентов, расчет сложных процентов, анализ безубыточности, текущую стоимость
будущих денежных потоков и амортизацию с использованием линейного метода.

Каждая проблема решается с помощью соответствующей функции Python,

дополненной примерами использования для демонстрации практического применения. Эти
примеры иллюстрируют, как Python может упростить финансовые расчеты, делая
сложные математические бизнес-задачи более доступными и управляемыми.

Ключевые слова:

бизнес-математика, программирование на Python, финансовые

расчеты, простые проценты, сложные проценты, анализ безубыточности, текущая
стоимость, будущие денежные потоки, амортизация, прямолинейный метод, финансовое
планирование, инвестиционный анализ, управление активами, налоговое планирование,
экономическое решение. -Изготовление.

1. Simple Interest Calculation

Simple interest is calculated with the formula:

Simple Interest

=

𝑃 × 𝑅 × 𝑇

100

where

𝑃

is the principal amount,

𝑅

is the rate of interest per year, and

𝑇

is the time in years.


background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

136

2. Compound Interest Calculation

Compound interest is calculated with the formula:

𝐴 = 𝑃 (1 +

𝑟

𝑛

)

𝑛𝑡

where

𝑃

is the principal amount,

𝑟

is the annual interest rate (decimal),

𝑛

is the number of

times interest is compounded per year, and

𝑡

is the time the money is invested for in years.

The compound interest is

𝐴 – 𝑃

.

3. Break-Even Analysis

Break-even point in units is calculated with the formula:

Break-Even Point

=

Fixed Costs

Selling Price per Unit

Variable Cost per Unit


background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

137

4. Present Value of Future Cash Flows

The present value (PV) of future cash flows is calculated with the formula:

𝑃𝑉 = ∑

𝐶

𝑡

(1 + 𝑟)

𝑡

𝑛

𝑡=1

where

𝐶

𝑡

is the cash flow at time

𝑡, 𝑟

is the discount rate, and

𝑛

is the number of periods.

5. Depreciation Using Straight-Line Method

Straight-line depreciation is calculated with the formula:

Annual Depreciation Expense

=

Cost

Salvage Value

Useful Life


background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

138

These are basic examples of business math problems and their implementations in

Python. Feel free to modify the parameters and use the functions as needed for different
scenarios.


REFERENCES

1.

Brigham, E. F., & Ehrhardt, M. C. (2019). *Financial Management: Theory & Practice*.
Cengage Learning.

2.

Bodie, Z., Kane, A., & Marcus, A. J. (2017). *Investments*. McGraw-Hill Education.

3.

Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). *Fundamentals of Corporate
Finance*. McGraw-Hill Education.

4.

Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work.
*Journal of Finance*, 25(2), 383-417.

5.

Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and
the Theory of Investment. *American Economic Review*, 48(3), 261-297.

6.

Mallayev O., Anvarjonov B., Aziz M. Cache Problems in Parallel Computational
Processes //Annals of the Romanian Society for Cell Biology. – 2021. – С. 8924-8934.

7.

Bunyodbek A. Solving examples of the distance between two straight lines in Python
//Innovations in exact science. – 2024. – Т. 1. – №. 3. – С. 1-7.











background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

139


background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

140


background image

ISSN:

2181-3906

2024

International scientific journal

«MODERN SCIENCE АND RESEARCH»

VOLUME 3 / ISSUE 5 / UIF:8.2 / MODERNSCIENCE.UZ

141

Библиографические ссылки

Brigham, E. F., & Ehrhardt, M. C. (2019). *Financial Management: Theory & Practice*. Cengage Learning.

Bodie, Z., Kane, A., & Marcus, A. J. (2017). *Investments*. McGraw-Hill Education.

Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2018). *Fundamentals of Corporate Finance*. McGraw-Hill Education.

Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. *Journal of Finance*, 25(2), 383-417.

Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. *American Economic Review*, 48(3), 261-297.

Mallayev O., Anvarjonov B., Aziz M. Cache Problems in Parallel Computational Processes //Annals of the Romanian Society for Cell Biology. – 2021. – С. 8924-8934.

Bunyodbek A. Solving examples of the distance between two straight lines in Python //Innovations in exact science. – 2024. – Т. 1. – №. 3. – С. 1-7.