The Math of Money: Making Mathematical Sense of Your Personal Finance Book

Most of us make financial decisions as much with the heart as the head. Or we follow the advice of experts. But what most of us don't do is think about the mathematics involved in picking a stock, selecting a mortgage, planning for retirement, hiring a new employee, or even betting at a casino. We may avoid the math because it seems hard or we think it's boring -- but avoid it we do.

In this lively and practical introduction to the mathematics of money, Morton D. Davis invites us to take a fresh look at the numbers that underpin our financial decisions. He talks about strategies to use when we are required to bet against the odds (purchasing auto insurance) or choose to bet against the odds (wagering in a casino or at the track). He considers the ways in which we can streamline and simplify the choices available to us in mortgages and other loans. And he helps us understand the real probabilities when we accept a tip on that "one in a thousand" stock, even when the tip comes from a brilliantly successful day trader.

The Math of Money is filled with what at first glance looks like anomaly and paradox, but it ends up showing us that a good deal of what we consider common sense actually makes no sense at all. With a wealth of entertaining and counterintuitive examples, it delights as well as informs, and will help readers treat their financial resources more rationally.

Morton D. Davis is Professor Emeritus of Mathematics at the City College of New York (CUNY) and the author of Game Theory: A Nontechnical Introduction, Mathematically Speaking, and The Art of Decision Making (Springer-Verlag, 1986).