Case 2 Analysis Tables

Analysis Table 4: Case 2 — Endowment Mortgage.

Analysis Table 5: Case 2 — Repayment Mortgage.

Analysis Table 6: Case 2 — An 18 Year Repayment Mortgage.

Note! Print the Tables separately. The Tables are not included when printing the Chapter.

Analysis Table 4

May 1991		Case 2: Endowment Mortgage				£40,000 Borrowed over 20 Years @ 11.85% p.a.						Analysis Table 4
A	B	C	D	E	F	G	H	I	J	K	L
Year	Gross Cash Flow Out	Interest Paid	Premium Paid	Interest Applicable for Tax Relief	Tax Relief on Interest	Tax Relief on Premium	Net Cash Flow Out	@ y% Internal Rate of Return				Tax Relief at 52% p.a.
								@ 13%	@15%	@14.5%	14.39%
								npv	npv	npv	npv
1	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	3623.70	3560.67	3576.22	3579.67	FV = P( 1 + i )n +£14,643 = £40,000 ( 1.1185 )20 +£14,643 i.e. FV = £390,289.86
2	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	3206.81	3096.24	3123.34	3129.35
3	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	2837.89	2692.38	2727.81	2735.69
4	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	2511.41	2341.20	2382.37	2391.54
5	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	2222.48	2035.83	2080.67	2090.69
6	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	1966.80	1770.29	1817.18	1827.69
7	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	1740.53	1539.38	1587.06	1597.77
8	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	1540.29	1338.60	1386.07	1396.77
9	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	1363.09	1163.99	1210.55	1221.06
10	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	1206.27	1012.17	1057.25	1067.46
11	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	1067.50	880.15	923.36	933.17
12	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	944.69	765.34	806.43	815.78
13	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	836.01	665.52	704.30	713.16
14	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	739.83	578.71	615.11	623.44
15	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	654.72	503.23	537.22	545.02
16	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	579.40	437.59	469.18	476.45
17	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	512.74	380.51	409.77	416.52
18	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	453.75	330.88	357.88	364.12
19	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	401.55	287.72	312.55	318.32
20	5829.60	4740.00	1089.60	3200.00	1664.00	70.82	4094.78	355.35	250.19	272.97	278.27
					NPV = ?npv			28,764.81	25,630.59	26,357.29	26,521.94
					yields FV			331,459.43	419,484.01	395,376.17	390,271.19
											OK

Analysis Table 5

May 1991		Case 2: Repayment Mortgage				£40,000 Borrowed over 20 Years @ 11.85% p.a.						Analysis Table 5
A	B	C	D	E	F	G	H	I	J	K	L
Year	Gross Cash Flow Out	Interest Paid	Principal Repaid	Interest Applicable for Tax Relief	Tax Relief on Interest	Tax Relief on Premium	Net Cash Flow Out	@ x% Internal Rate of Return				Tax Relief at 52% p.a.
								@ 14.5%	@14.4%	@14.345%
								pv	pv	pv	pv
1	5472.88	4740.00	564.88	3200.00	1664.00	10.92	3797.96	3317.00	3319.90	3318.88		FV = P( 1 + i )n = £40,000 ( 1.1185 )20 i.e. FV = £375,646.86
2	5472.88	4673.06	631.82	3200.00	1664.00	10.92	3797.96	2896.94	2902.01	2900.23
3	5472.88	4598.19	706.69	3200.00	1664.00	10.92	3797.96	2530.08	2536.72	2534.39
4	5472.88	4514.45	790.43	3200.00	1664.00	10.92	3797.96	2209.68	2217.41	2214.70
5	5472.88	4420.78	884.10	3200.00	1664.00	10.92	3797.96	1929.85	1938.30	1935.33
6	5472.88	4316.02	988.86	3200.00	1664.00	10.92	3797.96	1685.46	1694.32	1691.21
7	5472.88	4198.84	1106.04	3200.00	1664.00	10.92	3797.96	1472.01	1481.04	1477.88
8	5472.88	4067.77	1237.11	3200.00	1664.00	10.92	3797.96	1285.60	1294.62	1291.46
9	5472.88	3921.17	1383.71	3136.94	1631.21	10.92	3830.75	1132.49	1141.43	1138.29
10	5472.88	3757.20	1547.68	3005.76	1563.00	10.92	3898.96	1006.69	1015.52	1012.42
11	5472.88	3573.80	1731.08	2859.04	1486.70	10.92	3975.26	896.41	905.06	902.02
12	5472.88	3368.67	1936.21	2694.94	1401.37	10.92	4060.59	799.69	808.12	805.16
13	5472.88	3139.23	2165.65	2511.38	1305.92	10.92	4156.04	714.84	723.01	720.14
14	5472.88	2882.60	2422.28	2306.08	1199.16	10.92	4262.80	640.35	648.23	645.46
15	5472.88	2595.56	2709.32	2076.45	1079.75	10.92	4382.21	574.92	582.51	579.84
16	5472.88	2274.51	3030.37	1819.61	946.20	10.92	4515.76	517.42	524.70	522.14
17	5472.88	1915.41	3389.47	1532.33	796.81	10.92	4665.15	466.84	473.83	471.37
18	5472.88	1513.76	3791.12	1211.01	629.73	10.92	4832.23	422.33	429.02	426.67
19	5472.88	1064.51	4240.37	851.61	442.84	10.92	5019.12	383.11	389.52	387.27
20	5472.88	562.02	4742.86	449.62	233.80	10.92	5228.16	348.53	354.67	352.51
		(Column F) Total			26,028.49	PV = Σpv		25,230.24	25,379.94	25,327.37
	N.B.	Arithmetic Average (per month)			£108.45	yields FV		378,469.70	374,120.13	375,636.32
										OK

Analysis Table 6

May 1991		Case 2: An 18 Year Repayment Mortgage				£40,000 Borrowed over 18 Years @ 11.85% p.a.						Analysis Table 6
A	B	C	D	E	F	G	H	I	J	K	L
Year	Gross Cash Flow Out	Interest Paid	Principal Repaid	Interest Applicable for Tax Relief	Tax Relief on Interest	Tax Relief on Premium	Net Cash Flow Out	@ x% Internal Rate of Return				Tax Relief at 52% p.a.
								@ 14.5%	@14.6%	@14.641%
								pv	pv	pv	pv
1	5636.48	4740.00	728.48	3200.00	1664.00	10.92	3961.56	3459.88	3456.86	3455.62		FV = P( 1 + i )n = £40,000 (1.1185)18 i.e. FV = £300,267.12
2	5636.48	4653.68	814.80	3200.00	1664.00	10.92	3961.56	3021.73	3016.46	3014.30
3	5636.48	4557.12	911.36	3200.00	1664.00	10.92	3961.56	2639.06	2632.16	2629.34
4	5636.48	4449.12	1019.36	3200.00	1664.00	10.92	3961.56	2304.86	2296.82	2293.54
5	5636.48	4328.33	1140.15	3200.00	1664.00	10.92	3961.56	2012.98	2004.21	2000.63
6	5636.48	4193.22	1275.26	3200.00	1664.00	10.92	3961.56	1758.06	1748.87	1745.12
7	5636.48	4042.11	1426.37	3200.00	1664.00	10.92	3961.56	1535.42	1526.07	1522.25
8	5636.48	3873.08	1595.40	3098.46	1611.20	10.92	4014.36	1358.85	1349.40	1345.54
9	5636.48	3684.03	1784.45	2947.22	1532.55	10.92	4093.01	1210.02	1200.55	1196.69
10	5636.48	3472.57	1995.91	2778.06	1444.59	10.92	4180.97	1079.50	1070.12	1066.30
11	5636.48	3236.05	2232.43	2588.84	1346.20	10.92	4279.36	964.98	955.76	952.00
12	5636.48	2971.51	2496.97	2377.21	1236.15	10.92	4389.41	864.45	855.44	851.78
13	5636.48	2675.62	2792.86	2140.50	1113.06	10.92	4512.50	776.15	767.39	763.83
14	5636.48	2344.66	3123.82	1875.73	975.38	10.92	4650.18	698.54	690.06	686.61
15	5636.48	1974.49	3493.99	1579.59	821.39	10.92	4804.17	630.28	622.08	618.76
16	5636.48	1560.45	3908.03	1248.36	649.15	10.92	4976.41	570.20	562.29	559.08
17	5636.48	1097.34	4371.13	877.87	456.49	10.92	5169.07	517.27	509.65	506.56
18	5636.48	579.37	4889.11	463.50	241.02	10.92	5384.54	470.60	463.26	460.29
						PV = Σpv		25,872.83	25,727.45	25,668.24
						yields FV		296,034.75	299,033.51	300,272.44
										OK

Appendix 9/1

Analysis Table 4

Analysis Table 5

Analysis Table 6

Copyright © 2013, 2014 John O'Meara. All Rights Reserved.