LIFE TIME:
BILL ADONGO (1983-present)
is one of the greatest mathematicians,
physicist, Economist and Actuary of
all time. In Mathematics and Statistics, he is known by his Central
Point Law, Point Values Interval Law, Least Whole normal Theory, Central Prediction Theory and Multi-combinational
Theory.
In Actuarial Science, he is known by
his Central
Credibility, Central Rating, Minimum Uncertainty Method (or Theory),
etc. In Economics he is known by
his Central
Economics (or Infinitesimal Economics). In Physics
he is known by his Central Physics (or
Infinitesimal Physics) and Transformation Law of Relative Speed. In general he is known by his Least
Whole Normal Theory, Central Point Law and Multi-combinational
Theory.
Central Economics (or Infinitesimal Economics) is a branch
of economics that applies the Central Point Law, and Point
Values Interval Law. Below is a topic of his Central Economics (or Infinitesimal
Economics) in his diary.
SUPPLY PRICE OF MARGINAL EFFICIENCY
Given the supply price, S
and rate of marginal efficiency of capital r.
there is independent prediction of the annual prospective yield from the
capital asset, R1,R2,
R3, and Rn
if the supply price is
S=R1/(1+r)
+ R2/(1+r)2+……+Rn/(1+r)n. Two
years prospective yield from the capital asset is:
R1=C(1+r)2/2
R2=C(1+r)/2
(R1, R2)=[(
C(1+r)2/2, C(1+r)2/2+ C(1+r)2/2, …);( C(1+r)/2,
C(1+r)/2 - C(1+r)/2,…)]
EXAMPLE:
Suppose it costs 3000
Rupees to invest in Certainty machinery and the life of the machinery is two
years. If the rate is 10%,
a)what will be the prospective yield from the capital asset,
of the two years.
SOLUTION
R1=3000(1.10)2/2=1815
R2=3000(1.10)/2=1650
PROOF!
S=R1/(1+r)
+ R2/(1+r)2
3000=1650/(1.10)+1815/(1.10)
3000=1500+1500
3000=3000
