Analysis Table 5
|
May 1991 |
Case 2: Repayment Mortgage |
£40,000 Borrowed over 20 Years @ 11.85% p.a. |
Analysis Table 5 |
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|
A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
L |
||
|
Year |
Gross Cash Flow Out |
Interest Paid |
Principal Repaid |
Interest |
Tax Relief |
Tax |
Net Cash |
|
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 |
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|
OK |
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@ x% Internal Rate of Return
