The Math of Money: Making Mathematical Sense of Your Personal Finances

by Morton D. Davis

This lively and practical introduction to the mathematics of money invites us to take a fresh look at the numbers that underpin our financial decisions. Morton D. Davis 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 successful day trader. With a wealth of entertaining and counterintuitive examples, The Math of Money delights as well as informs, and will help readers treat their financial resources more rationally.

204 pages, Hardcover

First published June 26, 2001

Reviews

[Michelle · Rating 2 out of 5]

This was a great idea, but it didn't turn out so well. There are chapters on everything from compound interest and bonds to probability and game theory. The chapters mostly reveal a mathematical complexity that is counterintuitive, which is a fascinating topic for a book, but Morton, like many mathheads, isn't so great at explaining the mathematical concepts he understands intuitively. The sections on interest and bonds mostly made sense, but the end sections on game theory had huge gaps in the logic. This may have been because he tried to be too chatty in tone, but I think mostly that he just doesn't realize he's missing steps. I did appreciate that he includes the mathematical formulas rather than leaving them out so as not to scare the popular reader, but he desperately needed someone with just a high-school-math background to read this and tell him where he was making leaps in logic without explanation.