Transformations in
Business & Economics
- © Vilnius University, 2002-2008
- © Brno University of Technology, 2002-2008
- © University of Latvia, 2002-2008
THE LOGISTIC THEORY OF CAPITAL MANAGEMENT:
Deterministic Methods. Monograph
Stasys Albinas Girdzijauskas
Contents
- Introduction 20
- 1. Regular Interest
- 1.1 General Introduction: Percentages 22
- 1.2 Regular Interest 22
- 1.3 The Time Factor. Compound (Cumulative) Interest 23
- 1.4 Continuous Exponential Change 25
- 1.5 Equivalent Interest Rate 28
- 1.6 Discounting Using Compound Percentages 32
- 1.7 The Value Equation 34
- 2. Cash Flows
- 2.1 Concepts and Definitions 36
- 2.2 Coverage of Long-Term Loans by Fixed Annuities 36
- 2.3 Several Coverages by Fixed Annuities in a Unit of Time 38
- 2.4 Variable Annuities 40
- 2.5 Rounding up Annuities 42
- 2.6 Calculation of Rent 44
- 2.6.1 Annual rent 44
- 2.6.2 Several payments in one unit of time. The compound interest method 47
- 2.6.3 Several payments in one unit of time. The combined method 48
- 2.6.4 Variance in the results of rent calculation 52
- 3. Survey of Models of Capital Accumulation
- 3.1 Economic Models 55
- 3.1.1 The concept of a model 55
- 3.2 The Exponential Model 55
- 3.3 Logistic Growth 56
- 3.3.1 The Brazilian model of economic growth 57
- 3.4 Endogenous Models 58
- 3.4.1 Forerunners of endogenous growth theory 58
- 3.4.2 A brief analysis of antecedent 59
- 3.5 Economic Growth Given Limited Resources 61
- 3.6 Models of Population Dynamics 62
- 4. Logistic Interest
- 4.1 Linear and Exponential Increase of Capital 63
- 4.1.1 Compound interest 64
- 4.2 Logistic (Limited) Capital Growth 65
- 4.2.1 The logistic function 65
- 4.2.2 The logistic function of capital growth 66
- 4.2.3 Logistic future value 67
- 4.2.4 Logistic interest 71
- 4.2.5 Rate of capital growth 71
- 4.2.6 The sum of accumulated capital 73
- 4.3 Logistic Present Value 73
- 4.4 Equivalent Interest Rate 76
- 4.5 Applying Limit Models of Accumulation 77
- 4.6 Determining the Regression Coefficient 78
- 4.7 Logistic Recurrent Relations 82
- 4.8 Accumulation of Capital When There Are Several Recalculations in One Unit of Time 85
- 4.9 Logistic Discounting when there are Several Recalculations in One Unit of Time 87
- 5. Logistic Determinate Cash Flows
- 5.1 Logistic Rate Equation 89
- 5.1.1 Logistic accumulative rate equation 89
- 5.1.2. Discount rate equation 89
- 5.2 Logistic Annuities 92
- 5.3 Loan Coverage by Annuities 93
- 5.4 Logistic Rent 97
- 5.4.1 Annual rent 97
- 5.4.2 Logistic short-term and uninterrupted rents 99
- 5.5 Investment Estimation 100
- 5.5.1 The method of the net present value 100
- 5.5.2 The method of the internal rate of return 102
- 5.5.3 Validity of the project 103
- 5.6 Logistic Estimation of Investments 103
- 5.7 The Generalized Model of the Population Conditions: Growing and Declining Condition 108
- 5.7.1 Continuous method 110
- 5.7.2 Analysis of the capital flows of Company X 111
- 5.8 Logistic Method of the Modified Internal Rate of Return 113
- 5.8.1 The Production function 115
- 5.8.2 Price bubbles. Efficiency of the project and instability of results 116
- 6. Logistic Insurance Annuities
- 6.1 The Function of Life Expectancy 118
- 6.2 Life Insurance. Insurance for Living to a Particular Age 120
- 6.3 Retirement Insurance. Calculation of Pension Rates 122
- 6.3.1 Life rent (pension). Calculation of single premiums 122
- 6.3.2 Deferred annuities 124
- 6.3.3 Calculation of single premiums 124
- 6.3.4 Calculation of annual premiums 126
- 6.3.5 Terminated pension (rent) 128
- 6.3.6 Terminated deferred pension 129
- 6.4 Insurance for the Case of Death 131
- 6.4.1 Unconditional life assurance 132
- 6.4.2 Deferred death insurance 133
- 6.4.3 Annual premiums of deferred assurance 135
- 6.4.4 Terminated death insurance. Single and annual premiums 136
- 6.5 Endowment Insurance 137
- 6.5.1 Annual premiums in endowment insurance 138
- 6.5.2 Specificity of the logistic insurance annuities 139
- 7. Determinate Risk of Investment
- 7.1 Models of Financial Pyramids 142
- 7.2 Dependence of Accumulated Money on Time and the Rate of Paid-out Interest, the Members of the Cash flow Remaining a Constant Quantity 143
- 7.3 Financial Pyramids with Variable Cash flow Members 145
- 7.3.1 Analysis of the future value of accumulated capital 148
- 7.3.2 The present value of accumulated capital in the case of the financial pyramid 151
- 7.3.3 Logistic discount of the capital accumulated by financial pyramids 151
- Most Important Statements and Conclusions 154
- Summary in Lithuanian 156
- References 157
- Notes for Contributors 162
- Reikalavimai autoriams 165