An Algorithm to Renegotiate Debt through Equivalent Equations and Transaction Costs: A Proposal for the Field of Financial Education
Arturo García-Santillán 1 *
More Detail
1 Researcher and coordinator of the doctoral program in Management Science, UCC Business School Universidad Cristóbal Colón, Carr. Veracruz-Medellín s/n Col. Puente Moreno Boca del Río, Veracruz, MÉXICO* Corresponding Author

Abstract

Frequently, the shadow of financial insolvency is present in economies, whether between countries, companies or the general population (people) who contract the obligation of a loan, credit or other debt. Debt restructuring is one of the most effective financial tools to face this. Through mathematical modeling with algorithms designed for the inclusion of the variable transaction cost coefficient (TCC) and transaction cost amount (TCA), it was possible to demonstrate the feasibility to modify: VOD  to VODadjusted  and Y1...j = VODVNSP  to Y”1...j = VODadjusted / VNSP .

License

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

INT ELECT J MATH ED, 2019, Volume 14, Issue 1, 123-136

https://doi.org/10.12973/iejme/3981

Publication date: 21 Dec 2018

Article Views: 1723

Article Downloads: 1086

Open Access References How to cite this article