Analysis Table 3
Print

May 1991

Case 1: An 18 Year Repayment Mortgage

£35,000 Borrowed over 18 Years @ 11.85% p.a.

Analysis Table 3

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 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 = pv

30,068.69

28,316.69

27,823.73

27,862.63

yields FV 4

231,227.20

255,537.40

263,362.37

262,726.81

OK