Category Archives: Financial

Conversion Cost Mathematics in Mathcad


Introduction Normally, I use Excel for analyzing financial data. Today, I encountered a financial problem for which Mathcad seemed  appropriate– there was a bit of algebra involved. Let’s see what you think … Background Before I can state my problem, … Continue reading

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Age Distribution of US Health Care Expenditures


I have been wondering why US health care costs are so high. I just read this report that claims that the US spends a far greater percentage of its health care dollars on the elderly than other countries. I decided … Continue reading

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Magic Number Analysis – “Money Factor” in Auto Leasing


Introduction One of my sons is a newly minted accountant. He dreams of someday managing a hedge fund. We spend hours talking about modeling data and making predictions. These discussions have convinced me that I need to know more about … Continue reading

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A Product Cost Reduction Example


Introduction Maintaining good product margins is crucial to maintaining a healthy business. In the electronics business, customers have come to expect prices to drop every year. This means that I need to incorporate frequent cost reductions just to maintain margins. … Continue reading

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Rule of 72 Redeux


I frequently have to work on “time value of money” problems. Good approximate solutions to these problems can often be obtained by using the “Rule of 72.” The Rule of 72 will tell you approximately how many interest payment intervals … Continue reading

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