Analysis Table 3
|
May 1991 |
Case 1: An 18 Year Repayment Mortgage |
£35,000 Borrowed over 18 Years @ 11.85% p.a. |
Analysis Table 3 |
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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 29% p.a. |
||||
|
@ 12% |
@13% |
@13.3% |
13.276% |
||||||||||
|
pv |
pv |
pv |
pv |
||||||||||
|
1 |
4932.88 |
4147.50 |
637.42 |
3200.00 |
928.00 |
5.36 |
3999.52 |
3571.00 |
3539.40 |
3530.03 |
3530.77 |
FV = P(1 + i )n = £35,000 (1.1185)18 i.e. FV = £262,733.73 |
|
|
2 |
4932.88 |
4071.97 |
712.95 |
3200.00 |
928.00 |
5.36 |
3999.52 |
3188.39 |
3132.21 |
3115.65 |
3116.97 |
||
|
3 |
4932.88 |
3987.48 |
797.44 |
3189.98 |
925.09 |
5.36 |
4002.43 |
2848.85 |
2773.88 |
2751.91 |
2753.66 |
||
|
4 |
4932.88 |
3892.98 |
891.94 |
3114.38 |
903.17 |
5.36 |
4024.35 |
2557.55 |
2468.21 |
2442.17 |
2444.24 |
||
|
5 |
4932.88 |
3787.29 |
997.63 |
3029.83 |
878.65 |
5.36 |
4048.87 |
2297.44 |
2197.56 |
2168.62 |
2170.92 |
||
|
6 |
4932.88 |
3669.07 |
1115.85 |
2935.26 |
851.23 |
5.36 |
4076.29 |
2065.18 |
1957.92 |
1927.02 |
1929.47 |
||
|
7 |
4932.88 |
3536.84 |
1248.08 |
2829.47 |
820.55 |
5.36 |
4106.97 |
1857.78 |
1745.71 |
1713.61 |
1716.15 |
||
|
8 |
4932.88 |
3388.95 |
1395.97 |
2711.16 |
786.24 |
5.36 |
4141.28 |
1672.59 |
1557.78 |
1525.09 |
1527.68 |
||
|
9 |
4932.88 |
3223.52 |
1561.40 |
2578.82 |
747.86 |
5.36 |
4179.66 |
1507.23 |
1391.39 |
1358.54 |
1361.13 |
||
|
10 |
4932.88 |
3038.50 |
1746.42 |
2430.80 |
704.93 |
5.36 |
4222.59 |
1359.56 |
1243.93 |
1211.38 |
1213.95 |
||
|
11 |
4932.88 |
2831.55 |
1953.37 |
2265.24 |
656.92 |
5.36 |
4270.60 |
1227.70 |
1113.34 |
1081.33 |
1083.86 |
||
|
12 |
4932.88 |
2600.07 |
2184.85 |
2080.06 |
603.22 |
5.36 |
4324.30 |
1109.94 |
997.64 |
966.40 |
968.86 |
||
|
13 |
4932.88 |
2341.17 |
2443.75 |
1872.94 |
543.15 |
5.36 |
4384.37 |
1004.78 |
895.13 |
864.81 |
867.19 |
||
|
14 |
4932.88 |
2051.58 |
2733.34 |
1641.26 |
475.97 |
5.36 |
4451.55 |
910.88 |
804.29 |
774.98 |
777.29 |
||
|
15 |
4932.88 |
1727.68 |
3057.24 |
1382.14 |
400.82 |
5.36 |
4526.70 |
827.01 |
723.78 |
695.56 |
697.77 |
||
|
16 |
4932.88 |
1365.40 |
3419.52 |
1092.32 |
316.77 |
5.36 |
4610.75 |
752.11 |
652.40 |
625.31 |
627.43 |
||
|
17 |
4932.88 |
960.18 |
3824.74 |
768.14 |
222.76 |
5.36 |
4704.76 |
685.22 |
589.12 |
563.16 |
565.19 |
||
|
18 |
4932.88 |
506.95 |
4277.97 |
405.56 |
117.61 |
5.36 |
4809.91 |
625.48 |
533.00 |
508.16 |
510.10 |
||
|
PV = Σpv |
30,068.69 |
28,316.69 |
27,823.73 |
27,862.63 |
|||||||||
|
yields FV |
231,227.20 |
255,537.40 |
263,362.37 |
262,726.81 |
|||||||||
|
OK |
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@ x% Internal Rate of Return