👉 Deposits math is a branch of mathematics that deals with the study of deposits, which are sums of money held in various financial instruments and institutions over time. It involves understanding how deposits grow or shrink due to interest, fees, withdrawals, and other financial transactions. The core concept revolves around the accumulation of money over time, often modeled using differential equations or discrete-time models like the compound interest formula (A = P(1 + r)^t), where A is the future value, P is the principal deposit, r is the interest rate, and t is time. More advanced topics include stochastic processes to model uncertainty in financial markets, such as the Black-Scholes model for option pricing or Markov chains for modeling state transitions in deposit accounts. Deposits math is crucial for financial institutions, investors, and policymakers to analyze liquidity, risk, and profitability in banking and investment systems.
