4 Responses to Challenge Dec-2016 “Loan Approval”

1. Maarten Schadd says:

   January 31, 2017 at 7:55 am

   This challenge needs a bit more information on how the computations are made.
   What I do not understand is how you compute that Peter Johnston has a personal equity in the first step. He has a monthly income of 4000 and monthly debt of 2500. I somehow have to combine this to get to an equity of 25200 according to the OpenRules video. How is this calculation done?
   Another question is how you get to an accumulated remaining of 48800 in step 3. With a new debt of 200k and equity of 52k I would expect a change of 52k – 200k = -148k. However, 125200-148k = -22800 which is not 48800 as mentioned.

   Reply
2. jacobfeldman says:

   January 31, 2017 at 6:43 pm

   Maarten,
   I plan to provide a solution for this challenge using our latest DMN implementation as time permits. Meanwhile, you may see how it was done years ago with basic Rules tables at http://openrules.com/loan_dynamics.htm. I believe it includes the calculation logic as well.
   Jacob

   Reply
   • Maarten Schadd says:

     February 6, 2017 at 12:41 pm

     Yes, that documentation answers my first question. For calculating the Borrower equity you take (Monthly Income * 0.8 – Monthly Debt) * Loan Term = 25200. Without this essential information it is not possible to make a good start.

     It does not answer my second question though. The code shown there indeed indicates that for calculating the value you indeed take all the equities minus the debts and the loan amount. In step 3, I would expect a change of 52k – 200k = -148k. However, 125200-148k = -22800 which is not 48800 as mentioned.

     Reply
3. jacobfeldman says:

   February 7, 2017 at 1:16 am

   Maarten,
   Today I created a decision model in OpenRules that describes all calculations in details.Hopefully, if I didn’t make mistakes, it will clarify your concerns – see https://goo.gl/Pfqr1L. Looking forward to seeing your solution,
   Jacob

   Reply

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