EPGE discusses Financial Mathematics and the Justice System

Last Tuesday, October 22nd, FGV/EPGE - Graduate School of Economics - welcomed professor Clovis de Faro - professor of the School and Advisor to FGV's Presidency - for the lecture Financial Mathematics and the Justice System, within the Contemporary Issues series.Clovis showed that, since the legislation opposes compound interests, the Brazilian Justice System has determined the Price Table to be replaced by a system associated to the simple interests regime, known as the Gauss method.  The Price Table is usually adopted to calculate the benefits listed financing amortization, in particular mortgages. The lecture intended both to demonstrate that the Price Table, although based on compound interest, does not entail compound interests, provided that there are no installments in arrears, and to show that the simple interest regime, lacking term cindibility, present irremediable deficiencies when debits must be redeemed for more than a single installment.Besides Professor Clovis, EPGE professors Marcelo Moreira and Paul Klinger, the directors of undergraduate studies, Luis Braido and André Villela, and EPGE's General Director, Rubens Penha Cysne participated in the lecture.Professors Afonso Arinos de Mello Franco Neto, Ricardo Cavalcanti and Luiz Guilherme Schymura were also at the lecture.The event took place last Tuesday, October 22, in the auditorium of the 12th floor of FGV's headquarters in Rio de Janeiro.