Analysis Table 4
|
May 1991 |
Case 2: Endowment Mortgage |
£40,000 Borrowed over 20 Years @ 11.85% p.a. |
Analysis Table 4 |
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|
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 52% p.a. |
||||
|
@ 13% |
@15% |
@14.5% |
14.39% |
||||||||||
|
pv |
pv |
pv |
pv |
||||||||||
|
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 = £40,000 (1.1185)20 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 |
||
|
PV = Σpv |
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 |
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@ y% Internal Rate of Return