Math Is Fun Forum

training_diva

Member

Registered: 2009-07-21

Posts: 3

I'm embarrassed-need help quick

I need help and am embarrassed to ask anyone at my work.  I'm trying to figure out how to calculate a tolerance of something in the amount of 1/8th.  Here is the example:  If a loan is 6% and you have to redisclose to a customer if the tolerance differs an eighth or .125 then how do I calculate if something falls within that tolerance.  In the example I'm looking at the rate goes to 6.20 which exceeds the tolerance and so we would have to redisclose. PLEASE HELP!!!

mathsyperson

Moderator

Registered: 2005-06-22

Posts: 4,900

Re: I'm embarrassed-need help quick

Take away and add to the original number and that gives you the range of tolerance.

6-0.125 = 5.875
6+0.125 = 6.125

So the range of tolerance is 5.875 - 6.125. You would redisclose if the range falls outside that.

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It wanted to be normal.

training_diva

Member

Registered: 2009-07-21

Posts: 3

Re: I'm embarrassed-need help quick

Thank you for that quick reply.  I need some additional assistance.

We would also have to redisclose to a consumer if a fee pushed us above the .125 (1/8th) tolerance.  How would I calculate if a fee increase would push us above the tolerance?

bobbym

bumpkin

From: Bumpkinland

Registered: 2009-04-12

Posts: 109,606

Re: I'm embarrassed-need help quick

(snip)

Hi training_diva;

I don't follow you here can you be more specific what the problem is.

Last edited by MathsIsFun (2009-07-23 00:14:42)

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In mathematics, you don't understand things. You just get used to them.
If it ain't broke, fix it until it is.
Always satisfy the Prime Directive of getting the right answer above all else.

MathsIsFun

Administrator

Registered: 2005-01-21

Posts: 7,713

Re: I'm embarrassed-need help quick

(Just removed some posts and your reply to them, bobby)

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"The physicists defer only to mathematicians, and the mathematicians defer only to God ..."  - Leon M. Lederman

George,Y

Member

Registered: 2006-03-12

Posts: 1,379

Re: I'm embarrassed-need help quick

Does it mean 6%±6%/8 instead?

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X'(y-Xβ)=0

training_diva

Member

Registered: 2009-07-21

Posts: 3

Re: I'm embarrassed-need help quick

I found out that we have software that calculates the APR for us so a fee that affects the APR would adjust theAPR. 

The original post

Take away and add to the original number and that gives you the range of tolerance.

6-0.125 = 5.875
6+0.125 = 6.125

So the range of tolerance is 5.875 - 6.125. You would redisclose if the range falls outside that.[/b]

Told me what I need to know.