# Tagged Questions

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### When does variance fail to meet its purpose in mathematical statistics? [closed]

It have shown in a lot of both math and statistics book, however, When the books define the variance, it doesn't give much attention to math based theoretical background, i wonder if some formula that ...
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### Portfolio which replicates given payoff

Consider the following payoff function: p(S_T) = \begin{cases} 0 & \text{if } S_{T} \leq 70 \\ S_{T}-70 & \text{if } S_{T} \in (70; 100] \\ -S_{T}+120 & \text{if } S_{T} \in (100; 120] ...
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### Are there constraint problem calculators?

So I just remembered Lincoln Logs exist, so I found ten giant sets of them on ebay for Buy It Now, and I'm trying to decide what combination of purchases gives me the most logs for the least money if ...
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### If $i=0.09$, find $n$ and the amount of final payment.

A fund of $\$500 $is to be accumulated by$ n $annual payments of$ \$100$, plus a final payment as small as possible made one year after the last regular payment. If $i = 0.09$, find $n$ and ...
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### at a nominal rate of interest of 8% converted semiannually…Find the initial amount of the loan.

A loan is to be repaid with level instalments payable at the end of each half-year for $3$ and $\frac{1}{2}$ years, at a nominal rate of interest of 8% converted semiannually. After the $4^{\rm th}$ ...
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### Determine the effective annual interest rate on the loan

A borrower owes \$5000 today and has promised to pay \$1900 at the end of the next three years to repay the loan. Determine the effective annual interest rate on the loan. What is the outstanding ...
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### How to convert interest rate to discount factor

I'm studying on Kellison's Theory of Interest and I'm stuck on the exercise 20/a of the 1st chapter. If the $i=0.1$ then $d = 0.0901$ $d_5=\frac{A_5-A_4}{A_5}$ when I insert $d$ into this ...
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### Showing an inequality with interest rates and compounding

Suppose that your grandmother is receiving Social Security at the start of next year and has to choose between two plans for how to receive her payments. Divide each year into $k$ payment periods ($k$ ...
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### Confused about Effective Rate of Discount- Theory of Interest

I'm currently reading Kellison's book, The Theory of Interest. I've reached the chapter on Effective Rate of Discount and it's somewhat confusing. The book explains it as a loan where interest is paid ...