Naslov
Dimensionless Characteristic of the Interest Rate

Autori
Francišković, Drago

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
CIET 2020 : Conference Proceedings / Kovačević, Tonko ; Akrap, Ivan - Split : Sveučilišni odjel za stručne studije Sveučilišta u Splitu, 2020, 50-54

ISBN
978-953-7220-52-5

Skup
4th Contemporary Issues In Economy & Technology (CIET 2020)

Mjesto i datum
Split, Hrvatska, 29.05.2020

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
interest rate ; dimensional analysis in economics ; simple interest ; compound interest ; equivalency of interest rates ; econophysics

Sažetak
This paper presents the interest rate as quantity with no dimension. This is opposite to a widespread perception among economists that a dimension of interest rate is 1/time. This perception is so widely spread that it is a part of the economic theory. That theory has a problem with dimensional analysis but this is not discussed here. The paper presents a new form of formulas for value of a capital during a time interval when a change of the capital is calculated using both a simple and a compound interest calculation. Those formulas do not have a problem with dimensional analysis and they are dimensionally homogeneous, that means they are independent of the size of the base units. So, they are the correct mathematical model for the value of the capital that changes over time interval using simple and compound interest calculation. This paper shows that some fundamental quantities in economic theory can be considered in a different way that is consistent with the dimensional analysis.

Izvorni jezik
Engleski

Znanstvena područja
Matematika, Interdisciplinarne prirodne znanosti, Ekonomija

POVEZANOST RADA