Home Appendix 8/1

APPENDICES

APPENDIX 8/1

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Case 1 Analysis Tables

Analysis Table 1: Case 1 — Endowment Mortgage.

Analysis Table 2: Case 1 — Repayment Mortgage.

Analysis Table 3: Case 1 — An 18 Year Repayment Mortgage.

Note! Print the Tables separately. The Tables are not included when printing the Chapter.

 

Analysis Table 1

May 1991

Case 1: Endowment Mortgage

£35,000 Borrowed over 20 Years @ 11.85% p.a.

Analysis Table 1

A

B

C

D

E

F

G

H

I

J

K

L

Year

Gross Cash Flow Out

Interest Paid

Premium Paid

Interest
Applicable
for Tax
Relief

Tax Relief
on Interest

Tax
Relief on
Premium

Net Cash
Flow Out

@ y% Internal Rate of Return

Tax Relief at 29% p.a.

@13%

@13.5%

@13.15%

13.158%

npv

npv

npv

npv

1

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

3664.81

3648.66

3659.95

3659.69

FV = P( 1 + i )n
+£12,770

= £35,000 ( 1.1185 )20
+£12,770

i.e. FV = £341,461.00

2

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

3243.19

3214.68

3234.60

3234.14

3

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

2870.08

2832.32

2858.68

2858.07

4

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

2539.89

2495.43

2526.45

2525.74

5

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

2247.69

2198.62

2232.83

2232.05

6

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

1989.11

1937.11

1973.34

1972.50

7

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

1760.27

1706.70

1744.00

1743.14

8

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

1557.76

1503.70

1541.32

1540.45

9

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

1378.55

1324.85

1362.19

1361.33

10

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

1219.96

1167.27

1203.88

1203.03

11

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

1079.61

1028.43

1063.97

1063.14

12

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

955.41

906.11

940.32

939.52

13

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

845.49

798.33

831.04

830.27

14

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

748.22

703.38

734.46

733.73

15

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

662.14

619.71

649.10

648.41

16

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

585.97

546.00

573.66

573.01

17

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

518.56

481.06

506.99

506.38

18

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

458.90

423.84

448.07

447.50

19

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

406.11

373.43

396.00

395.47

20

5103.90

4147.50

956.40

3200.00

928.00

34.67

4141.23

359.39

329.01

349.98

349.48

NPV = ?npv

29,091.11 28,238.64 28,830.83

28,817.05

yields FV 4

335,219.41 355,435.67 341,152.31

341,471.75

OK

 

Analysis Table 2

May 1991

Case 1: Endowment Mortgage

£35,000 Borrowed over 20 Years @ 11.85% p.a.

Analysis Table 2

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%

@13.2%

13.18%

npv

npv

npv

npv

1

4789.73

4147.50

494.27

3200.00

928.00

5.36

3856.37

3443.19

3412.72

3406.69

3407.29

FV = P( 1 + i )n

= £35,000 ( 1.1185 )20

i.e. FV = £328,691.00

2

4789.73

4088.93

552.84

3200.00

928.00

5.36

3856.37

3074.27

3020.10

3009.44

3010.50

3

4789.73

4023.42

618.35

3200.00

928.00

5.36

3856.37

2744.89

2672.66

2658.52

2659.93

4

4789.73

3950.14

691.63

3160.11

916.43

5.36

3867.94

2458.15

2372.28

2355.56

2357.22

5

4789.73

3868.18

773.59

3094.54

897.42

5.36

3886.95

2205.56

2109.68

2091.11

2092.96

6

4789.73

3776.51

865.26

3021.21

876.15

5.36

3908.22

1980.03

1877.19

1857.38

1859.35

7

4789.73

3673.98

967.79

2939.18

852.36

5.36

3932.01

1778.64

1671.34

1650.78

1652.82

8

4789.73

3559.30

1082.47

2847.44

825.76

5.36

3958.61

1598.82

1489.07

1468.15

1470.23

9

4789.73

3431.03

1210.74

2744.82

796.00

5.36

3988.37

1438.25

1327.67

1306.71

1308.78

10

4789.73

3287.55

1354.22

2630.04

762.71

5.36

4021.66

1294.87

1184.73

1163.97

1166.03

11

4789.73

3127.08

1514.69

2501.66

725.48

5.36

4058.89

1166.83

1058.14

1037.76

1039.78

12

4789.73

2947.59

1694.18

2358.07

683.84

5.36

4100.53

1052.50

946.02

926.15

928.12

13

4789.73

2746.83

1894.94

2197.46

637.26

5.36

4147.11

950.41

846.69

827.45

829.35

14

4789.73

2522.28

2119.49

2017.82

585.17

5.36

4199.20

859.24

758.70

740.14

741.98

15

4789.73

2271.12

2370.65

1816.90

526.90

5.36

4257.47

777.82

680.73

662.91

664.67

16

4789.73

1990.19

2651.58

1592.15

461.72

5.36

4322.65

705.12

611.64

594.58

596.26

17

4789.73

1675.98

2965.79

1340.78

388.83

5.36

4395.54

640.19

550.40

534.10

535.71

18

4789.73

1324.54

3317.23

1059.63

307.29

5.36

4477.08

582.20

496.12

480.57

482.10

19

4789.73

931.44

3710.33

745.15

216.09

5.36

4568.28

530.41

447.98

433.18

434.64

20

4789.73

491.77

4150.00

393.42

114.09

5.36

4670.28

484.15

405.30

391.21

392.6

Total

13,357.50

NPV = ?npv

29,765.54

27,939.16

27,596.36

27,630.32

Arithmetic Average (per month)

£55.66

yields FV 4

287,127.12

321,945.39

329,443.04

328,684.87

OK

 

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

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%

npv

npv

npv

npv

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

NPV = ?npv

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

 

Copyright © 2013, 2014 John O'Meara. All Rights Reserved.