41,49,51 - u(100,000)=1-e^(-1000/365)...

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Newspaper data Demand Probability 10 0.10 11 0.15 12 0.30 13 0.20 14 0.15 15 0.10
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$100,000 1 year loan 12% interest rate If bank does not approve the loan…06% annual return bank believes .04% loan .80 or .25 favorable reccomendation
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Unformatted text preview: u(100,000)=1-e^(-1000/365) u(-100,000)=1-e^-(-100000/3650) a. the bank should do a thourough investigation of the customers credit rec for $1000 b. cord...
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This note was uploaded on 04/20/2008 for the course AAA S 110 taught by Professor Logan,bikubolaje during the Spring '05 term at Pennsylvania State University, University Park.

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41,49,51 - u(100,000)=1-e^(-1000/365)...

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