Application of Laplace Transform
Present discounted value, cash flow, perpetuity, Time derivative, Laplace transform
Abstract
The present discounted value equation in finance has a broad range of uses and may be applied to various areas of finance including corporate finance, banking finance and investment finance etc .The basic premise of present discounted value is the time value money .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. In this note we show how present discounted value in finance related to Laplace transforms. Also we discus on the present value rules for the elementary functions and the general properties of the Laplace transform. And we will focus on the application of time derivative property using Laplace transforms to each present value rule.
Downloads
How to Cite
References
Roy S Freedman (2006) Introduction to financial Technology. 130-135.
Duncan Foley A note for Laplace Transforms.
Eugene Brigham, Joel Houston Unknown Title. 130-140.
D Widder (1946) What is the Laplace Transform?.
Stephen A Buser (1986) Laplace Transforms as present Value Rules. XLI(1).
Risk Latte (2010) Laplace Transforms & the time value of Money-I.
E Kreyszig Unknown Title. 251-279.
Mark Willis, Sam Barker (1999) Towards the Automated Discovery of Chemical Reaction Networks.
Robert Grubbstrom (1967) On the application of the Laplace Transform to Certain Economic Problems. 13(7).
William Mcc, Siebert Unknown Title. 2, 43-48.
J Ben, Heijdra (1999) Fiscal policy multipliers and finite lives.
J Ben, Heijdra (1999) Using the Laplace Transform for dynamic policy analysis.
Dean Duffy (2021) Advanced Engineering Mathematics with MATLAB®. 161-169.
D Deshmukh Advanced Modern Engineering Mathematics. 921-960.
Joel Schiff The Laplace Transform: Theory & applications. 1-30.
Hans-Joachim Girlich (2012) Between Paris and Linkoping: Applications of Integral Transforms to Planning and Finance. 40.
Published
2012-10-09
Issue
Section
License
Copyright (c) 2012 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.