# The Mathematics of Lending

## Mark Harrison

Crowd Funding is a boom area, and one that broadly splits into three sections - projects that ask for donations in return for some kind of reward (T-shirts are popular), startups that ask for funding in exchange for a claim on future profits (share issues), and companies that borrow money for interest (loan funding.) Of these, the loan funding one is the most deeply mathematical, and therefore the subject of this talk. This talk explains:

- why the industry cares about quantisation and sampling,
- discrete vs. continuous solutions and the problems with pennies,
- why calculating averages is even harder than you think,
- the probability of losing all your money rather than just some of it,
- the dark places under the earth where the light of statistics doesn’t shine, and,
- why 6 divided by 3 only equals 2 for certain values of 6.

Mark Harrison studied Mathematics and Computation from 1989-1992, in the days before the University used the phrase “Computer Science”, and is CTO of FundingKnight.

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