Loan Transactions with Random Dates for the First and Last Periodic Instalments
Usually, loan transactions contracted in practice are nonrandom; that is to say, all amounts received (principal) and paid (period instalments) by the borrower are previously agreed with the lender, as well as their respective dates. In this paper, two new alternative loan models are introduced, dep...
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| Format: | Article |
| Language: | English |
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Wiley
2016-01-01
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| Series: | International Journal of Mathematics and Mathematical Sciences |
| Online Access: | http://dx.doi.org/10.1155/2016/2152189 |
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| _version_ | 1832550616457543680 |
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| author | María del Carmen Valls Martínez Salvador Cruz Rambaud |
| author_facet | María del Carmen Valls Martínez Salvador Cruz Rambaud |
| author_sort | María del Carmen Valls Martínez |
| collection | DOAJ |
| description | Usually, loan transactions contracted in practice are nonrandom; that is to say, all amounts received (principal) and paid (period instalments) by the borrower are previously agreed with the lender, as well as their respective dates. In this paper, two new alternative loan models are introduced, depending on whether the borrower survives or not to fulfil all repayment obligations. In this way, either the initial or the final date of repayments can be subject to this contingency. Additionally, the different parameters of such random transactions are determined, as well as several measures of profitability/cost for the lender/borrower, respectively. These transactions can be attractive for both the lender and the borrower, which therefore make them worthy of consideration and subsequent implementation for the benefit of both parties. |
| format | Article |
| id | doaj-art-44c6ad6e58d04a34b37c94bb086cfbe3 |
| institution | Kabale University |
| issn | 0161-1712 1687-0425 |
| language | English |
| publishDate | 2016-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Journal of Mathematics and Mathematical Sciences |
| spelling | doaj-art-44c6ad6e58d04a34b37c94bb086cfbe32025-02-03T06:06:12ZengWileyInternational Journal of Mathematics and Mathematical Sciences0161-17121687-04252016-01-01201610.1155/2016/21521892152189Loan Transactions with Random Dates for the First and Last Periodic InstalmentsMaría del Carmen Valls Martínez0Salvador Cruz Rambaud1Departamento de Economía y Empresa, Universidad de Almería, La Cañada de San Urbano s/n, 04120 Almería, SpainDepartamento de Economía y Empresa, Universidad de Almería, La Cañada de San Urbano s/n, 04120 Almería, SpainUsually, loan transactions contracted in practice are nonrandom; that is to say, all amounts received (principal) and paid (period instalments) by the borrower are previously agreed with the lender, as well as their respective dates. In this paper, two new alternative loan models are introduced, depending on whether the borrower survives or not to fulfil all repayment obligations. In this way, either the initial or the final date of repayments can be subject to this contingency. Additionally, the different parameters of such random transactions are determined, as well as several measures of profitability/cost for the lender/borrower, respectively. These transactions can be attractive for both the lender and the borrower, which therefore make them worthy of consideration and subsequent implementation for the benefit of both parties.http://dx.doi.org/10.1155/2016/2152189 |
| spellingShingle | María del Carmen Valls Martínez Salvador Cruz Rambaud Loan Transactions with Random Dates for the First and Last Periodic Instalments International Journal of Mathematics and Mathematical Sciences |
| title | Loan Transactions with Random Dates for the First and Last Periodic Instalments |
| title_full | Loan Transactions with Random Dates for the First and Last Periodic Instalments |
| title_fullStr | Loan Transactions with Random Dates for the First and Last Periodic Instalments |
| title_full_unstemmed | Loan Transactions with Random Dates for the First and Last Periodic Instalments |
| title_short | Loan Transactions with Random Dates for the First and Last Periodic Instalments |
| title_sort | loan transactions with random dates for the first and last periodic instalments |
| url | http://dx.doi.org/10.1155/2016/2152189 |
| work_keys_str_mv | AT mariadelcarmenvallsmartinez loantransactionswithrandomdatesforthefirstandlastperiodicinstalments AT salvadorcruzrambaud loantransactionswithrandomdatesforthefirstandlastperiodicinstalments |