scholarly journals Competitive Analysis for Online Leasing Problem with Compound Interest Rate

2011 ◽  
Vol 2011 ◽  
pp. 1-12 ◽  
Author(s):  
Xingyu Yang ◽  
Weiguo Zhang ◽  
Weijun Xu ◽  
Yong Zhang
Keyword(s):  
Interest Rate ◽  
Competitive Analysis ◽  
The Other ◽  
Continuous Version ◽  
Numerical Examples ◽  
The Interest Rate ◽  
The One ◽  
Compound Interest ◽  
Theoretical Results ◽  
Deterministic Strategy

We introduce the compound interest rate into the continuous version of the online leasing problem and discuss the generalized model by competitive analysis. On the one hand, the optimal deterministic strategy and its competitive ratio are obtained; on the other hand, a nearly optimal randomized strategy is constructed and a lower bound for the randomized competitive ratios is proved by Yao's principle. With the help of numerical examples, the theoretical results show that the interest rate puts off the purchase date and diminishes the uncertainty involved in the decision making.

Capital Budgeting and business cycles

2021 ◽  
pp. 315-335
Author(s):  
Edward W. Fuller
Keyword(s):  
Interest Rate ◽  
Demand Curve ◽  
Supply And Demand ◽  
Investment Project ◽  
The Other ◽  
Investment Projects ◽  
Scarce Resources ◽  
Other Hand ◽  
The Future ◽  
The Interest Rate

Every investment project is aimed at achieving some future goal. This goal can only be attained by employing scarce resources, like time. Every investment project entails foregoing other investment projects. It is impossible to undertake all investment projects simultaneously because resources are scarce. This means each investment project is subject to cost. The investment project may be unsuccessful in achieving the future goal and the entrepreneur may suffer a loss. On the other hand, investment projects are only undertaken because they are perceived as more valuable than their costs. Every investment project undertaken implies the possibility of earning a profit. Investment projects take time. An investment project can be represented by a time line. Time A represents the beginning of the production process. Time B is the end of the production pro-cess. Line AB is called the period of production. Present goods are scarce resources that can be consumed im-mediately. On the other hand, future goods cannot be consumed immediately. Future goods are only expected to be consumer goods at some point in the future. An investment project entails making an investment at time A and receiving a present good at time B. All else equal, present goods are more valuable than future goods.1 Any good at time A is more valuable than the same good at time B. This is called time preference. Money is the present good par excellence. Therefore, future goods can be called future cash flows. All else equal, present money is more valuable than future money. This is called the time value of money. The interest rate is the price of present goods in terms of future goods. The interest rate is the price which equates the amount of present goods provided by savers with the amount of present goods demanded by investors. Like all prices, the interest rate is determined by supply and demand. Savers are suppliers of present goods. The supply curve (S) is the quantity of present goods supplied at each interest rate. Factor owners (investors) are the demanders, or buyers, of present goods. The demand curve (D) is the quantity of present goods demanded at each interest rate. The intersection of the supply and demand curve determines the interest rate. The interest rate is determined by the supply and demand for present goods:2

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KONSUMSI MASYARAKAT DI PROVINSI ACEH

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Tarmizi Gadeng
Keyword(s):  
Interest Rate ◽  
Inflation Rate ◽  
Econometric Model ◽  
Least Square ◽  
The Other ◽  
Ordinary Least Square ◽  
Other Hand ◽  
The Interest Rate ◽  
The Impact

The main objective of this study is to find out the impact of the inflation rate,percapita income as wall as the interest rate on the household comsumption of the population of Aceh.Secondary data 1983 – 2008 are collected or couning from various ageucig and instution and ordinary least square econometric model used as a method of analysis.            The result of the study tells us that the rate of inflation and the percapita income hare positive and significoutly effect on the household consumtion while the rate of interest on the other hand statistically has a negative and not significant effect on the house hold consumption. The interest rate which reflect the influence of the consumption has a positive, not significantly and in elactic. 

Study of Electromagnetic Multipole Transition Half-Lives of One-Hole 15O–15N and One-Particle 17O–17F Mirror Nuclei

2013 ◽  
Vol 68 (10-11) ◽  
pp. 709-714 ◽  
Author(s):  
Mohammadreza Pahlavani ◽  
Behnam Firoozi
Keyword(s):  
Experimental Data ◽  
Wave Functions ◽  
The Other ◽  
Spin Orbit Coupling ◽  
Spin Orbit ◽  
Matrix Elements ◽  
Saxon Potential ◽  
N Isotopes ◽  
The One ◽  
Theoretical Results

Energy spectrum and wave functions are obtained numerically with a potential consisting of Woods-Saxon, Coulomb, and spin-orbit coupling parts for the nuclei 15O, 15N, 17O, and 17F. The radial parts of the wave functions are used to calculate some matrix elements of electromagnetic transitions. These results are applied to calculate half-lives of low-lying exited states in the one-particle 17O and 17F as well as in the one-hole 15O and 15N isotopes. The calculated half-lives are compared with available experimental and theoretical results based on harmonic oscillator wave functions and Weisskopf units. In comparison with the results calculated from the other methods, our results based on the Woods-Saxon potential indicate a satisfactory agreement with accessible experimental data.

scholarly journals PENENTUAN HARGA PREMI ASURANSI UNIT LINK DENGAN GARANSI MINIMUM

2019 ◽  
Vol 8 (3) ◽  
pp. 172
Author(s):  
NI LUH PUTU RATNA DEWI ◽  
I NYOMAN WIDANA ◽  
LUH PUTU IDA HARINI
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
The Other ◽  
Other Hand ◽  
Black Scholes ◽  
The Interest Rate

The goal of this research is to determine the pricing of unit-linked insurance after attaching the minimum guarantees, which are guaranteed minimum maturity benefit (GMMB) and guaranteed minimum death benefit (GMDB) using the Black-Scholes-Merton Method. Before the new price is determined, the previous steps are find the value of  and  for GMMB or  and   for GMDB. The result of pricing on the cases in this research, resulted if the new price included GMMB with the interest rate 6% and management expenses 0% and 2% are changed from Rp 21.000.000,00 become Rp 21.003.000,00 and Rp 21.031.000,00. On the other hand, the new price for interest rates 14% and 20% with both management expenses are constant. Furthermore, the new price included GMDB with management expense 0% and 2% also interest rates 6%, 14%, and 20% in succession are changed from Rp 21.000.000,00 become Rp 25.132.000,00; Rp 21.031.000,00; Rp 21.002.000,00; Rp 44.521.000,00; Rp 44.520.000,00 and Rp 44.520.000,00.

scholarly journals VALUATION OF GUARANTEED ANNUITY OPTIONS IN AFFINE TERM STRUCTURE MODELS

2007 ◽  
Vol 10 (02) ◽  
pp. 363-387 ◽  
Author(s):  
CHI CHIU CHU ◽  
YUE KUEN KWOK
Keyword(s):  
Interest Rate ◽  
Term Structure ◽  
Analytic Approximation ◽  
Approximation Methods ◽  
Term Structure Model ◽  
Stochastic Duration ◽  
Payoff Structure ◽  
Interest Rate Term Structure ◽  
The Interest Rate ◽  
The One

We propose three analytic approximation methods for numerical valuation of the guaranteed annuity options in deferred annuity pension policies. The approximation methods include the stochastic duration approach, Edgeworth expansion, and analytic approximation in affine diffusions. The payoff structure in the annuity policies is similar to a quanto call option written on a coupon-bearing bond. To circumvent the limitations of the one-factor interest rate model, we model the interest rate dynamics by a two-factor affine interest rate term structure model. The numerical accuracy and the computational efficiency of these approximation methods are analyzed. We also investigate the value sensitivity of the guaranteed annuity option with respect to different parameters in the pricing model.

scholarly journals Option Pricing Formulas in a New Uncertain Mean-Reverting Stock Model with Floating Interest Rate

2020 ◽  
Vol 2020 ◽  
pp. 1-8
Author(s):  
Zhaopeng Liu
Keyword(s):  
Interest Rate ◽  
Option Pricing ◽  
Financial Market ◽  
American Option Pricing ◽  
European Option ◽  
Numerical Examples ◽  
Mathematical Properties ◽  
Proposed Model ◽  
Stock Model ◽  
The Interest Rate

Options play a very important role in the financial market, and option pricing has become one of the focus issues discussed by the scholars. This paper proposes a new uncertain mean-reverting stock model with floating interest rate, where the interest rate is assumed to be the uncertain Cox-Ingersoll-Ross (CIR) model. The European option and American option pricing formulas are derived via the α -path method. In addition, some mathematical properties of the uncertain option pricing formulas are discussed. Subsequently, several numerical examples are given to illustrate the effectiveness of the proposed model.

scholarly journals BAGAIMANA KEUANGAN ISLAM MENGGUNAKAN FAKTOR DISKONTO DALAM CAPITAL BUDGETING DECISION?

El Dinar ◽  
2018 ◽  
Vol 6 (2) ◽  
pp. 83
Author(s):  
Elsi Mersilia Hanesti
Keyword(s):  
Interest Rate ◽  
Financial Management ◽  
Return On Investment ◽  
Capital Budgeting ◽  
Profit Sharing ◽  
Islamic Finance ◽  
Literature Study ◽  
The Interest Rate ◽  
Comparison Level ◽  
Compound Interest

<em>In the conventional financial management, the method of calculating the</em><em> capital budgeting decision using NPV and IRR, which both use the interest rate as one of its component count (as a discount factor). Then, how Islamic financial management sees this? With the research methods of literature study, this paper is about the financial outlook of Islam the methods of NPV and IRR as well as finding out what the proper method for capital budgeting decision. Results of the study were that in the process capital budgeting decision, the use of NPV and IRR methods are allowed (according Obaidullah, Prof. Shabir F.Ulgener, and Zarqa). The interest rate in the calculation only as a means of simplification and ease in the calculation. The use of a list of compound interest rate (compounded interest) is a tool to calculate the expected rate today and the future. It can be said that the Islamic finance uses a list of compound interest rate as a tool for simplify the calculation, just as a comparison level of opportunity cost in alternative investments. The level of interest in the calculation of these can be replaced with a comparator, such as: the return on the sukuk, the profit sharing ratio, and the return on investment or other real instruments in Islam.</em>

Markov Branching Decision Chains with Interest-Rate-Dependent Rewards

1995 ◽  
Vol 9 (1) ◽  
pp. 99-121 ◽  
Author(s):  
Ying Huang ◽  
Arthur F. Veinott
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Optimal Policy ◽  
Linear Program ◽  
Present Value ◽  
Constraint Matrix ◽  
Rate Dependent ◽  
Markov Decision ◽  
The Interest Rate ◽  
The One

Finite-state-and-action Markov branching decision chains are studied with bounded endogenous expected population sizes and interest-rate-dependent one-period rewards that are analytic in the interest rate at zero. The existence of a stationary strong-maximum-present-value policy is established. Miller and Veinott's [1969] strong policy-improvement method is generalized to find in finite time a stationary n-present-value optimal policy and, when the one-period rewards are rational in the interest rate, a stationary strong-maximum-present-value policy. This extends previous studies of Blackwell [1962], Miller and Veinott [1969], Veinott [1974], and Rothblum [1974, 1975], in which the one-period rewards are independent of the interest rate, and Denardo [1971] in which semi-Markov decision chains with small interest rates are studied. The problem of finding a stationary n-present-value optimal policy is also formulated as a staircase linear program in which the objective function and right-hand sides, but not the constraint matrix, depend on the interest rate, and solutions for all small enough positive interest rates are sought. The optimal solutions of the primal and dual are polynomials in the reciprocal of the interest rate. A constructive rule is given for finding a stationary n-present-value optimal policy from an optimal solution of the asymptotic linear program. This generalizes the linear programming approaches for finding maximum-reward-rate and maximum-present-value policies for Markov decision chains studied by Manne [1960], d'Epenoux [1960, 1963], Balinski [1961], Derman [1962], Denardo and Fox [1968], Denardo [1970], Derman and Veinott [1972], Veinott [1973], and Hordijk and Kallenberg [1979, 1984].

On the Relation between the Theories of Compound Interest and Life Contingencies

1907 ◽  
Vol 41 (3) ◽  
pp. 305-348
Author(s):  
John Mayhew Allen
Keyword(s):  
First Principles ◽  
The Other ◽  
General Aspect ◽  
Integral Calculus ◽  
Infinitesimal Calculus ◽  
General Hypothesis ◽  
Other Hand ◽  
Logical Sequence ◽  
The One ◽  
Compound Interest

It has often occurred to me that but scant justice has been done to the application of the infinitesimal calculus to the theories of compound interest and life contingencies. This is, perhaps, in some measure due to the popular relegation of the differential and integral calculus to the realms of the so-called “higher mathematics.” There are, of course, two aspects of the case to be borne in mind. On the one hand, it is necessary to present the subjects in such a form as will be best suited to the student who is commencing to study them. For this purpose experience shows that a start should be made with particular cases, leaving the generalization until such time as the student shall have obtained a grasp of first principles sufficient to enable him to view the subjects in their general aspect. On the other hand, however, there is no doubt that to the reflective mind there comes a time when the desire is felt to invert the process and deduce the formulæ in their logical sequence from a fundamental general hypothesis.

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