Application of interpolation and extrapolation, Mathematics

Application

Interpolation and extrapolation are widely used by businessmen, administrators, sociologists, economists and financial analysts. While interpolation helps in completing the incomplete, lost or destroyed records, extrapolation is helpful in those circumstances where forecasting and prediction are required. In financial analysis, the technique of interpolation is widely used to find Internal Rate of Return of a project, Yield to Maturity of a bond and in all investment decisions which require the use of the Present Value and Future Value Interest Factor tables.

Posted Date: 9/13/2012 8:09:23 AM | Location : United States







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