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Unformatted text preview: MATH 1324 LOAN PROJECT SECTION 003: TEAM 4 NAME OF BORROWER: G&H Upholstery & Interiors YEARS OF EXPERIENCE: 9 EDUCATION: High School ECONOMY CONDITION: Normal LOAN INFORMATION Full Value of Loan Foreclosure Value of Loan Default Value of Loan $8,000,000 $3,997,000 $1,600,000 Let S represent the event that an attempted work out attempt succeeds. Let F represent the event that an attempted work out attempt fails. Let X represent the money received in dollars from an attempted workout with a randomly selected borrower. Number of Loans Tracked in the History File Loan Focus.xls Number of loans that were successful Number of loans that failed P(S) P(F) Expected value of a work out with G&H Upholstery & Interiors 8,226 3,818 4,408 0.464 0.536 $4,570,000 Based on the information obtained thus far, since the expected value of a loan workout is $4,570,000 and the Expected value of foreclosing on the loan is a guaranteed $3,997,000 it seems like Acadia Bank should...
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This note was uploaded on 04/13/2008 for the course MATH 1324 taught by Professor N during the Spring '08 term at Texas A&M.
 Spring '08
 n
 Math

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