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.
Davis (emeritus, math City College of New York) does not offer a quick road to wealth. Although his discussion doesn't require a sophisticated math background, readers will need a strong interest in money and numbers and a willingness to examine some of the fallacies of "intuitive" understanding. In fact, each chapter begins with "test your intuition" questions (answers at the back of the book) with regard to investment strategies, interest, bonds, mortgages, retirement, the psychology of investing, statistics, and options. Certainly, those who study this work will gain respect for the complexities and the nuances of money and investments, enhanced understanding of the logic behind why "sure" things go wrong, and some new ideas about how to proceed through the uncertain terrain of financial decision making. Annotation c. Book News, Inc., Portland, OR (booknews.com)