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 |
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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% |
@14.6% |
@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 |
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|
yields FV |
296,034.75 |
299,033.51 |
300,272.44 |
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|
OK |
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@ x% Internal Rate of Return