Analysis Table 1
|
May 1991 |
Case 1: Endowment Mortgage |
£35,000 Borrowed over 20 Years @ 11.85% p.a. |
Analysis Table 1 |
||||||||||
|
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
L |
||
|
Year |
Gross Cash Flow Out |
Interest Paid |
Premium Paid |
Interest |
Tax Relief |
Tax |
Net Cash |
|
Tax Relief at 29% p.a. |
||||
|
@13% |
@13.5% |
@13.15% |
13.158% |
||||||||||
|
pv |
pv |
pv |
pv |
||||||||||
|
1 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
3664.81 |
3648.66 |
3659.95 |
3659.69 |
FV = P(1 + i )n = £35,000 (1.1185)20 i.e. FV = £341,461.00 |
|
|
2 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
3243.19 |
3214.68 |
3234.60 |
3234.14 |
||
|
3 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
2870.08 |
2832.32 |
2858.68 |
2858.07 |
||
|
4 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
2539.89 |
2495.43 |
2526.45 |
2525.74 |
||
|
5 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
2247.69 |
2198.62 |
2232.83 |
2232.05 |
||
|
6 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
1989.11 |
1937.11 |
1973.34 |
1972.50 |
||
|
7 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
1760.27 |
1706.70 |
1744.00 |
1743.14 |
||
|
8 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
1557.76 |
1503.70 |
1541.32 |
1540.45 |
||
|
9 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
1378.55 |
1324.85 |
1362.19 |
1361.33 |
||
|
10 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
1219.96 |
1167.27 |
1203.88 |
1203.03 |
||
|
11 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
1079.61 |
1028.43 |
1063.97 |
1063.14 |
||
|
12 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
955.41 |
906.11 |
940.32 |
939.52 |
||
|
13 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
845.49 |
798.33 |
831.04 |
830.27 |
||
|
14 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
748.22 |
703.38 |
734.46 |
733.73 |
||
|
15 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
662.14 |
619.71 |
649.10 |
648.41 |
||
|
16 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
585.97 |
546.00 |
573.66 |
573.01 |
||
|
17 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
518.56 |
481.06 |
506.99 |
506.38 |
||
|
18 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
458.90 |
423.84 |
448.07 |
447.50 |
||
|
19 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
406.11 |
373.43 |
396.00 |
395.47 |
||
|
20 |
5103.90 |
4147.50 |
956.40 |
3200.00 |
928.00 |
34.67 |
4141.23 |
359.39 |
329.01 |
349.98 |
349.48 |
||
|
PV = Σpv |
29,091.11 | 28,238.64 | 28,830.83 |
28,817.05 |
|||||||||
|
yields FV |
335,219.41 | 355,435.67 | 341,152.31 |
341,471.75 |
|||||||||
|
OK |
|||||||||||||
@ y% Internal Rate of Return