Honors Program


Document Type



Betterton, A. (March 13, 2023). Applications of Financial Mathematics: An Analysis of Consumer Financial Decision Making. Undergraduate Honors Thesis. University of Nebraska-Lincoln.


Copyright Alyssa Betterton 2023.


Students always ask, “How can this be applied to the real world?” Mortgages, car loans, and credit card bills are things that almost everyone will have to make decisions about at some point in their lives. This research discusses the many different financial choices that consumers have to make. Consumers can use this information to understand how interest rates, the length of the loan, and the initial amount being borrowed affects the amount that is paid back to the companies. The intent of this thesis is to present the mathematical theory of interest. A web-based application has been built based on the concepts presented in this paper. The intent is to give students a straightforward source for basic financial decisions. Each concept has an explanation as well as a calculator where the variables of the transaction can be entered so the student understands the financial implications of the transaction.