Since the beginning of time man has been faced with the problem of finding more efficient ways of dealing with day to day activities. In the recent past, investment has then formed an integral part of the modern man and plays a crucial role in the economy. More accurate and profit maximizing tools are each day welcomed in the capitalist risky economy. These areas includes asset managers, investment services, consumer finance, specialty finance1, mortgage finance to mention just but a few. In this thesis, we discuss various ways of solving the problem of interest rates in mortgages, auto loans