Basic Arithmetic Operations

Python handles mathematical operations intuitively. These operations form the foundation of all financial calculations.

Basic Operators

Power and Division Operators

Order of Operations

Python follows standard mathematical order (PEMDAS: Parentheses, Exponents, Multiplication/Division, Addition/Subtraction):

Real Financial Calculations

Calculating Returns

Compound Interest Formula

The compound interest formula is: FV = PV x (1 + r)^n

Practice: Simple Investment Calculator

Practice: Position Value Calculator

Key Takeaways

• +, -, *, / work as expected for addition, subtraction, multiplication, division
• ** is for exponents (powers) - essential for compound growth
• // is floor division (rounds down)
• % is modulo (remainder)
• Use parentheses to control order of operations
• The compound interest formula PV x (1 + r)^n is foundational in finance

Next, we'll learn about lists - how to store collections of data like multiple stock prices!