Modelling a Mortgage: Living with Ill Conditioning

Synopsis: Introduces modelling by studying the behaviour of a building society mortgage. The problem of determining the monthly payments leads to a first order linear non-homogeneous recurrence relation. Discusses the method of solving such equations. Because the repayment figure in the example has been rounded off, a significant overpayment over 25 years results due to absolute ill-conditioning in the problem. A computer simulation is used to explore the effects of the other small changes in interest raties and repayment figures.
Series: Mathematical Models and Methods, Course Mst204
Language: English
Country: Great Britain
Medium: Video; Videocassette. Standard formats. col. 24 min.
Year of production: 1982
Availability: OUT OF DISTRIBUTION
Subjects: Mathematics
Keywords: ill-conditioning; mathematical modelling

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