November 9th, 2015, 11:29 AM  #11 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,413 Thanks: 1024 
I stick to my water pistols! Over the 2 years, a savings account at those 2 rates accumulates to 3000(1.0075)^12(1.01)^12 The required monthly annuity to equal the above is 138.0914495336702774404... This is sticking to the normal financial formulas, not inventing anything exotic. I ain't listening to anyone who tells me otherwise, even if they're correct! 
November 9th, 2015, 05:29 PM  #12  
Member Joined: May 2014 From: Rawalpindi, Punjab Posts: 69 Thanks: 5  Quote:
You, Sir Jonah, were much sober at that time and indeed were the first one and the only one to reply to my thread where you posted links to two textbooks on finance on Oogle Cooks the Books. I still recall one of these books was published by Glen McGraw Hill (Glen was an Aussie fast bowler at that time). My memory does not serve me remember the source of the other text as these are my golden years in retardment living off borrowed money as I held no job when I was young therefore the savings nest is empty. Yes in one of those texts, the author referred to sinking funds and the odd paradox that the terminal payment is usually different from periodic payment. Now I had angered the Cool Canadian Capitalist our beloved Sir Denis who is sticking to his water guns.  
November 9th, 2015, 07:55 PM  #13  
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,413 Thanks: 1024  Quote:
Seriously, a final payment being slightly different has nothing to do with mathematics; it's just the nature of Da Beast; a bit like eating exactly 1/3 of an apple; you'll leave or you'll overeat some ..............3333 of the uncooperating fruit from Eden... (if there's no worm(s) inside, of course). Now let me go back to my priedieu and finish off the Hoooooooly Rosary I was sweatingly reciting bead by bead...  
November 9th, 2015, 08:08 PM  #14  
Member Joined: May 2014 From: Rawalpindi, Punjab Posts: 69 Thanks: 5  Quote:
Now yours truly, Abraham A, works under the supervision of his new boss Atan whose wickedness is a clear and present danger to those who have been lending to US under stringent terms and conditions. At this juncture in time, US stand at crossroads of financial battleground and the winner will once again regain the financial and economic position that it was pinstriped suited for. Fiction and myth aside, the final battle of Armageddon is about to unfold in the World financial markets where almighty US dollar sign of times will reign supreme and all other money denominations will bow down to the Great Atan, the Lord of darkness, wickedness and civil disobedience movement of early 21st century Fox movie studios whose control will be taken back from the current owner from Down Under the influence of crack cocaine. Here are the excerpts of the monthly payments scheme shown throw the rear view mirror of Atan's Lincoln Township Car. Same loan of \$3,000 for 24 months at rates close to 12%, the results shown previously had payments lower than the actual payments, thanks Odd for that! This time the results for monthly payments are all above the actual payment, thank Atan for this i(112) = 11.9999999% i(1324) = 12.0000001% Market price of the monthly payment Payment = ($141.22) Total Interest Paid = $389.29 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Arbitrage driven prices of monthly payment Payment = ($141.23) Total Interest Paid = $389.54 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Payment = ($141.32) Total Interest Paid = $391.64 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Payment = ($141.35) Total Interest Paid = $392.45 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Payment = ($141.39) Total Interest Paid = $393.38 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) i(112) = 12% i(1324) = 12% Market price of the monthly payment Payment = ($141.22) Total Interest Paid = $389.29 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Arbitrage driven prices of monthly payment Payment = ($141.23) Total Interest Paid = $389.54 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Payment = ($141.32) Total Interest Paid = $391.64 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Payment = ($141.35) Total Interest Paid = $392.45 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00) Payment = ($141.39) Total Interest Paid = $393.38 Total Principal Paid = $(3,000.00) Balance at end of 24th month = $(0.00)  
November 9th, 2015, 08:41 PM  #15 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,413 Thanks: 1024 
Arbitrage = Arab tiger (anagram)

November 10th, 2015, 09:39 AM  #16 
Senior Member Joined: May 2008 Posts: 299 Thanks: 81  Beer soaked ramblings follow. Nay Sir Dexteronlline/Dexteronlline2/AbrahamA/Ghostaccount (or whatever future username you'd care to come up with), I say nay. I say I never was sober at those times you mentioned. If I was, I say wouldn't have posted anything at all. 
November 10th, 2015, 10:37 AM  #17  
Senior Member Joined: May 2008 Posts: 299 Thanks: 81  Beer soaked ramblings follow. Quote:
'Tis of course mathematics nonetheless, your objections notwithstanding. Considering that you managed to draw our retired serial coke drinker friend from his endless self declarations of retirement/withdrawal (he even asked the mods to delete him), I'd say you sure did manage to "liven up" this economics section with his highly creatve book of whatever references. Ah yes, economics, I remember it well. The 3 basic luxuries: food , shelter and clothing (I'm sure Sir Dan is familiar with this joke what with him being a fan of one of the stars of the show from which this line was taken). Btw, your hope to "liven up" this section made me remember this: A loan at an annual effective rate of 9% or 9% compounded annually or $\displaystyle {j_1} = 9\%$ is being repaid by monthly payments of \$750 each. The total principal repaid in the 12 monthly installments of the 8th year is \$400. What is the total interest paid in the 12 installments of the 10th year? An interesting additional question of course is whether it's possible to solve for the amount of the loan and loan term from the given information.  
November 10th, 2015, 11:34 AM  #18 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,413 Thanks: 1024  
November 10th, 2015, 04:19 PM  #19 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,413 Thanks: 1024  Code: MONTH PAYMENT BALANCE 84 750.00 B ..... 96 750.00 B  400 (400 net to principal) p = payment = 750.00 i = 1.09^(1/12)  1 : u (1 + i)^12 Bu  p(u  1)/i = B  400 B = 99,616.379123.....? B  400 = 99,216.379123... You can do this portion yourself: Calculate n associated with B  400 : n = 428 (rounded) Total months = 428 + 96 = 524 Calculate PV of 524 payments: 101,645.380261..... SO: the loan is for 101,645, over 524 months (43 years 8 months). Works out fine: checked it... 
November 10th, 2015, 04:20 PM  #20  
Member Joined: May 2014 From: Rawalpindi, Punjab Posts: 69 Thanks: 5  Quote:
As I said to Denis the mentor before deciding to spend three days and equivalent of \$4 out of my pocket to prepare and post my replies to this thread and that on borrowed funds which wont be repaid as the income of \$3,000 I was once making from selling my Excel addon was siphoned off me by someone(s) who like to play Odd yet they know they are only Ogg. You see your argument about basic luxuries or in most peoples cases basic needs is of little value. Our job, which was referenced in one of our posts, as ordained by Odd is of utter importance. We were selected to free US from financial and economic bondage that was imposed on US by foreign lenders with help from those who govern US. For example, on Friday Nov 6th, 2015 the New York Times newspaper reported unexpected strong US employment and Earnings growth data may lead the Feds to increase interest rates on Short Term borrowing in their December meeting. http://www.nytimes.com/2015/11/07/bu...toctober.html You see this is a classic example of rigging the rate that leads to a rigged market. Nothing you read in newspapers, nothing you see on TV news may be taken as truth written in black and white. There are 50 shades of gray from which to extract the truth. But then tis is the 21st century and those who deem that founding fathers done wrong to their fathers are now reversing the tapes to do wrongs to others fathers. Thus the cycle of doing wrongs to fix wrongs done in past, present and future. As stated clearly, our task is to FREE US from economic and financial bondage. And the day is nigh when the SOB wont rise on Earth for a period of 24 hours as Angel Investor Arch Gabriel would cover the planet mother Earth with his wings as a SIGN of what will unveil in the 24 hours time period. From the time planet of the Apes awake in Tokyo to the time Hawaiians watch the NBC nightly news with Ms Mary Alice Williams, the whole stock indices around the globe will be wiped out. The cash flows from fixed income securities issued by US will have their signs reversed as if the creditors will turn into perpetual debtors as if US owed them Nothing and the Rest of the World will Owe us for Eternity. That will the final episode of play written, directed and produced by AbrahamA, the selftaught and selfproclaimed Financial Engineer chosen by Odd. Amen And yes I only had one can of Coke this morning as its 6:20AM here in Punjab  

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