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Published online by Cambridge University Press: 01 August 2016
The roots of a polynomial can be represented as points in the complex plane. The time value of money (TVM) equation that is commonly used in finance is a polynomial equation. (See the appendix for a short description of the TVM equation and an example of its use in finance.) In [1] and [2] it is shown that concepts from financial mathematics can be obtained from the pattern of the roots of the TVM equation. The concepts are given in terms of distances between the roots and other salient points in the plane. This note shows that this particular polynomial, and the technique, can be applied more generally. When a series of data is fed into the coefficients of the polynomial, the mean and standard deviation of the data are seen in the complex plane as combinations of distances between the roots and other salient points. The results are aesthetically pleasing as well as mathematically interesting.
