Date of Award
5-2012
Degree Type
Report
Degree Name
Master of Science (MS)
Department
Mathematics and Statistics
Committee Chair(s)
Daniel Coster
Committee
Daniel Coster
Committee
Christopher Corcoran
Committee
Richard Cutler
Abstract
The sinking fund method is a way to repay a loan where the borrower pays the amount of interest accrued by the principal at the end of each time period and puts a certain amount in a sinking fund in order to repay the principal at the end of the loan. Usually, we assume that the interest rate on the sinking fund is the same during the entire time of the loan. In the study, we will depart from the usual assumptions and will look at different scenarios, including when changes of the interest rate on the sinking fund follows a normal distribution, a uniform distribution and ARIMA processes.
Recommended Citation
Gangnang Fosso, Placede Judicaelle, "Simulating Loan Repayment by the Sinking Fund Method (Sinking Fund Governed by a Sequence of Interest Rates)" (2012). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 135.
https://digitalcommons.usu.edu/gradreports/135
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Comments
This work made publicly available electronically on June 4, 2012.