On the use of descartes' rule of signs in financial Mathematics

• Grant number: 13/26625-7
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: June 01, 2014
• End date: May 31, 2015
• Field of knowledge: Physical Sciences and Mathematics - Mathematics - Applied Mathematics
• Principal Investigator: Vanessa Avansini Botta Pirani
• Grantee: Jéssica Ventura da Silva
• Host Institution: Faculdade de Ciências e Tecnologia (FCT). Universidade Estadual Paulista (UNESP). Campus de Presidente Prudente. Presidente Prudente , SP, Brazil

Abstract

This project proposes the study of classical results related to the number of positive and negative zeros of polynomials with real coefficients, with special attention to Descartes' Rule of Signs. These results will be used to explore some concepts of financial mathematics, such as the determination of the interest rate i in expressions involving the present value, future value, period n and the payment of a financial investment. These expressions are represented by a polynomial of degree n in the variable i and the methodology used in various books explore only the numerical method, where the algebraic method is not mentioned.