## Realistic model using difference equations for repayment of loans in finance

-

April 2014

9-14

#### ISSN:

2319-8044 (Online) – 2231-346X (Print)

Vol.26 – No.1

jusps-A

#### ABSTRACT:

The purpose of this paper is to find simple ways of solving problems in finance by the difference equations. As difference equations have discrete variables they are useful for developing computer program. The main contribution of this paper is the simplicity of the method presented which gives opportunity to create formulae for cases which are specialized and more realistic. In this article we formulate a mathematical model for repayment of loans by equal installments (such as EMI – Equated Monthly Installments, Equated Fortnightly Installments and Equated Quarterly Installments).
The aim of this article is to develop computer program which can be used easily. The software can be helpful to consumers prone to fuzzy math. The paper is concluded by giving a comparative study table to weigh the various paying options.

#### Copy the following to cite this Article:

, “Realistic model using difference equations for repayment of loans in finance”, Journal of Ultra Scientist of Physical Sciences, Volume 26, Issue 1, Page Number 9-14, 2016

#### Copy the following to cite this URL:

, “Realistic model using difference equations for repayment of loans in finance”, Journal of Ultra Scientist of Physical Sciences, Volume 26, Issue 1, Page Number 9-14, 2016

Available from: http://www.ultrascientist.org/paper/158/

The purpose of this paper is to find simple ways of solving problems in finance by the difference equations. As difference equations have discrete variables they are useful for developing computer program. The main contribution of this paper is the simplicity of the method presented which gives opportunity to create formulae for cases which are specialized and more realistic. In this article we formulate a mathematical model for repayment of loans by equal installments (such as EMI – Equated Monthly Installments, Equated Fortnightly Installments and Equated Quarterly Installments).
The aim of this article is to develop computer program which can be used easily. The software can be helpful to consumers prone to fuzzy math. The paper is concluded by giving a comparative study table to weigh the various paying options.