The Whitewash Imperative

Appendix 10/1

Analysis Table 7

Analysis Table 7: Case1 Comparison of Loan Principal Outstanding between an ‘18 Year Repayment Mortgage’ and a ‘20 year Endowment Mortgage Encashed after 18 Years’.

May 1991  Case 1     Comparison of Loan Outstanding      Analysis Table 7

 18 Year Repayment Mortgage

£35,000 — Borrowed @ 11.85% p.a. and
Repaid over 18 Years
18 Year Early Encashment
of a 20 Year Endowment
Mortgage
£35,000 — Borrowed @
11.85% p.a. and Repaid by the
encashment after 18 Years, of
a 20 Year Endowment
Mortgage
 Column AColumn BColumn CColumn DColumn E
End YearPrincipal Repaid Each YearCumulative Principal RepaidLoan Principal OutstandingLoan Principal Outstanding
(if Policy Encashed)
Endowment Fund Value
1637.42637.4234,362.5835,060Minus 60
2712.951,350.3733,649.6334,245755
3797.442,147.8132,852.1933,3531,647
4891.943,039.7531,960.2532,3802,620
5997.634,037.3830,962.6231,3173,683
61,115.855,153.2329,846.7730,1594,841
71,248.086,401.3128,598.6928,8966,104
81,395.977,797.2827,202.7227,5107,490
91,561.409,358.6825,641.3225,9989,002
101,746.4211,105.1023,894.9024,34310,657
111,953.3713,058.4721,941.5322,53412,466
122,184.8515,243.3219,756.6820,55514,445
132,443.7517,687.0717,312.9318,38516,615
142,733.3420,420.4114,579.5916,00418,996
153,057.2423,477.6511,522.3513,31621,684
163,419.5226,897.178,102.839,44525,555
173,824.7430,721.914,278.094,99930,001
184,277.9734,999.88ZeroZero35,139

Note ! Endowment Fund Value is based on an Assumed Growth Rate of 9.75% p.a. (Net)