Copy of Lesson 2 Sheikskush

8/18/2019 Copy of Lesson 2 Sheikskush.

1/54

A Project has the following Cash ows

Determine:

1. Payback period

2. Discounted payback period

3. Net present value

4. Proftability index5. IRR

Discussion

!at is t!e i"portance o# eac! o# t!e above$

discountin! rate

Project cash ows

Year (N) Cash ows (KES)

% &13'%%%'%%%'%%%( &13'%%%'%%%'%%%(

1 2'%%%'%%%'%%% &11'%%%'%%%'%%%(2 4'%%%'%%%'%%% &)'%%%'%%%'%%%(

3 4'5%%'%%%'%%% &2'5%%'%%%'%%%(

4 *'%%%'%%%'%%% 3'5%%'%%%'%%%

5 4'%%%'%%%'%%% )'5%%'%%%'%%%

* 2'%%%'%%%'%%% +'5%%'%%%'%%%

NP, 1'%%*'4%+')5*.4+

PI

IRR 1).*-+

12 13

NP, 2'2)3'5)+'%4*.)4 1'-32'-13'133.11


2/54


3/54

15

Discounted #actors Discountin/ 0

1 &13'%%%'%%%'%%%( &13'%%%'%%%'%%%(

%.-*+5*521)4 1')3+'13%'435 &11'2*%'-*+'5*5(%.)5*143**)3 3'%24'5)4'**+ &-'23*'2+4'-+*(

%.*5)51*2324 2'+5-'-23'%4* &5'2))'4)1'-5%(

%.5)1)53245* 3'43%'51+'4)4 &1'-4*'+52'3))(

%.4+)1)*)353 1'+--')%*'+41 141')54'5*5

%.43232)5+5+ -*4'*55'1+2 1'%%*'4%+')5*

1'%%*'4%+')5* &3-'4)3'424'3*)(

14'%%*'4%+')5*

13'%%%'%%%'%%%

1.%))4

14 15 1* 1)

1'41%')5)'31-.)3 1'%%*'4%+')5*.4+ *1-'-32'225.4- 24)'145'4++.*-

12 13 14 15 1* 1) 1- 1+ 2%

&5%%'%%%'%%%.%%(

5%%'%%%'%%%.%%

1'%%%'%%%'%%%.%%

1'5%%'%%%'%%%.%%

2'%%%'%%%'%%%.%%

2'5%%'%%%'%%%.%%

NPV

NP


4/54

&1'%%%'%%%'%%%.%%(


5/54

1- 1+ 2%

&1%+'4)4'+%5.4)( &451'-%2'*42.*3( &)-%'5*4'12-.+4(


6/54


7/54

1 2 3 4

1%% 1%% 1%% 1%%

-1) 2*-

++

1%

0o"poun

,alue &%%%( 0u"


8/54

1%%%%% -%%%

1%-'%%%

113'4%%.%%

-

1%- 11*.*4 125.+)12 13*.%4-+ 14*.+32-1 2 3 4 5

,alue &%%%( 1%% 1%% 1%% 1%%

0u"" int #or prev year - 1) 2* 3*

Interest #or t!e year - + + 1% 11

5 * ) - + 1%

1%% 1%% 1%% 1%% 1%% 1%%

3* 4)5+ )1

-5 1%%1112

1314

151*

d interest #or 1%% 3 -.

" int #or prev years Interest #or t!e year


9/54

15-.*-)4 1)1.3-24 1-5.%+3%21 1++.+%%5 215.-+24++)2)3* ) - + 1%

1%% 1%% 1%% 1%%

4) 5+ )1 -5 1%% 115.-+25

12 13 14 15 1*

215.-+25%%

1%%.%%


10/54

oan a"ortisation calculator

Interest rate 5.5

6"ount 5'%%%'%%%

7i"e &8ears( 15

7i"e &9ont!s( 1-%

9ont!ly repay"ent 4%'-54

oan 15'%%%'%%%

Interest rate 1+

Period &8ears( 15

Period &9ont!s( 1-%

9ont!ly Repay"ents :252'431.4%Princial !nterest

1 14'+31.4% :23)'5%%.%%

2 15'1*).-2 :23)'2*3.5+

3 15'4%).+- :23)'%23.43

4 15'*51.+4 :23*'))+.4)

5 15'-++.)* :23*'531.*5

* 1*'151.5% :23*'2)+.+%

) 1*'4%).24 :23*'%24.1)

- 1*'**).%2 :235')*4.3+

+ 1*'+3%.+1 :235'5%%.4+

1% 1)'1+-.+- :235'232.42

11 1)'4)1.3% :234'+*%.1%

12 1)')4).+3 :234'*-3.4)

13 1-'%2-.+4 :234'4%2.4)

14 1-'314.4% :234'11).%1

15 1-'*%4.3- :233'-2).%3

1* 1-'-+-.+4 :233'532.4*

1) 1+'1+-.1- :233'233.23

1- 1+'5%2.15 :232'+2+.2*

1+ 1+'-1%.+3 :232'*2%.4)

2% 2%'124.*1 :232'3%*.-%

21 2%'443.25 :231'+--.1*

22 2%')**.+3 :231'**4.4)

23 21'%+5.)4 :231'335.**

24 21'42+.)* :231'%%1.*5

25 21')*+.%* :23%'**2.34

2* 22'113.)4 :23%'31).*)

2) 22'4*3.-) :22+'+*).53


11/54

2- 22'-1+.55 :22+'*11.-5

2+ 23'1-%.-* :22+'25%.55

3% 23'54).-+ :22-'--3.52

31 23'+2%.)3 :22-'51%.*)

32 24'2++.4- :22-'131.+3

33 24'*-4.22 :22)')4).1+

34 25'%)5.%5 :22)'35*.3535 25'4)2.%) :22*'+5+.33

3* 25'-)5.3- :22*'55*.%2

3) 2*'2-5.%) :22*'14*.33

3- 2*')%1.25 :225')3%.15

3+ 2)'124.%2 :225'3%).3-

4% 2)'553.4+ :224'-)).+2

41 2)'+-+.)5 :224'441.*5

42 2-'432.+2 :223'++-.4-

43 2-'--3.11 :223'54-.2+

44 2+'34%.43 :223'%+%.+-45 2+'-%4.+- :222'*2*.42

4* 3%'2)*.+% :222'154.51

4) 3%')5*.2- :221'*)5.12

4- 31'243.25 :221'1--.15

4+ 31')3).+4 :22%'*+3.4)

5% 32'24%.4* :22%'1+%.+5

51 32')5%.+3 :21+'*-%.4)

52 33'2*+.4+ :21+'1*1.+2

53 33')+*.25 :21-'*35.15

54 34'331.3* :21-'1%%.%4

55 34'-)4.+4 :21)'55*.4*

5* 35'42).13 :21)'%%4.2-

5) 35'+--.%* :21*'443.35

5- 3*'55).-) :215'-)3.54

5+ 3)'13*.)% :215'2+4.)%

*% 3)')24.)% :214')%*.)1

*1 3-'322.%1 :214'1%+.4%

*2 3-'+2-.)) :213'5%2.*3

*3 3+'545.14 :212'--*.2*

*4 4%'1)1.2) :212'2*%.13

*5 4%'-%).32 :211'*24.%-

** 41'453.44 :21%'+)).+)

*) 42'1%+.)- :21%'321.*2

*- 42'))*.52 :2%+'*54.--

*+ 43'453.-2 :2%-'+)).5+

)% 44'141.-3 :2%-'2-+.5)

)1 44'-4%.)5 :2%)'5+%.**

)2 45'55%.)2 :2%*'--%.*-


12/54

)3 4*'2)1.+4 :2%*'15+.4*

)4 4)'%%4.5- :2%5'42*.-2

)5 4)')4-.-2 :2%4'*-2.5-

)* 4-'5%4.-5 :2%3'+2*.5*

)) 4+'2)2.-4 :2%3'15-.5)

)- 5%'%52.++ :2%2'3)-.41

)+ 5%'-45.5% :2%1'5-5.+1-% 51'*5%.55 :2%%')-%.-5

-1 52'4*-.35 :1++'+*3.%5

-2 53'2++.1% :1++'132.3%

-3 54'143.%% :1+-'2--.4%

-4 55'%%%.2) :1+)'431.14

-5 55'-)1.11 :1+*'5*%.3%

-* 5*')55.)3 :1+5'*)5.*)

-) 5)'*54.3* :1+4'))).%4

-- 5-'5*).22 :1+3'-*4.1-

-+ 5+'4+4.54 :1+2'+3*.-)+% *%'43*.54 :1+1'++4.-)

+1 *1'3+3.45 :1+1'%3).+*

+2 *2'3*5.51 :1+%'%*5.-+

+3 *3'352.+* :1-+'%)-.44

+4 *4'35*.%5 :1--'%)5.35

+5 *5'3)5.%2 :1-)'%5*.3-

+* **'41%.13 :1-*'%21.2-

+) *)'4*1.*2 :1-4'+*+.)-

+- *-'52+.)* :1-3'+%1.*4

++ *+'*14.-2 :1-2'-1*.5+

1%% )%')1).%5 :1-1')14.35

1%1 )1'-3*.)4 :1-%'5+4.**

1%2 )2'+)4.1* :1)+'45).25

1%3 )4'12+.5- :1)-'3%1.-2

1%4 )5'3%3.3% :1))'12-.11

1%5 )*'4+5.*% :1)5'+35.-%

1%* ))')%*.)- :1)4')24.*2

1%) )-'+3).14 :1)3'4+4.2)

1%- -%'1-*.+- :1)2'244.43

1%+ -1'45*.*% :1)%'+)4.-%

11% -2')4*.33 :1*+'*-5.%)

111 -4'%5*.4- :1*-'3)4.+2

112 -5'3-).3- :1*)'%44.%3

113 -*')3+.34 :1*5'*+2.%*

114 --'112.)2 :1*4'31-.*+

115 -+'5%).-3 :1*2'+23.5)

11* +%'+25.%4 :1*1'5%*.3*

11) +2'3*4.*+ :1*%'%**.)2


13/54

11- +3'-2).13 :15-'*%4.2)

11+ +5'312.)3 :15)'11-.*-

12% +*'-21.-4 :155'*%+.5*

121 +-'354.-* :154'%)*.55

122 ++'+12.14 :152'51+.2*

123 1%1'4+4.%- :15%'+3).32

124 1%3'1%1.%) :14+'33%.33125 1%4')33.51 :14)'*+).+%

12* 1%*'3+1.)+ :14*'%3+.*2

12) 1%-'%)*.32 :144'355.%-

12- 1%+')-).53 :142'*43.-)

12+ 111'525.-4 :14%'+%5.5)

13% 113'2+1.** :13+'13+.)4

131 115'%-5.45 :13)'345.+*

132 11*'+%).*3 :135'523.))

133 11-')5-.*) :133'*)2.)3

134 12%'*3+.%2 :131')+2.3+135 122'54+.13 :12+'--2.2)

13* 124'4-+.4+ :12)'+41.+1

13) 12*'4*%.5- :125'+)%.-3

13- 12-'4*2.-) :123'+*-.53

13+ 13%'4+*.-) :121'+34.54

14% 132'5*3.%) :11+'-*-.34

141 134'**1.+- :11)')*+.42

142 13*')+4.13 :115'*3).2)

143 13-'+*%.%4 :113'4)1.3)

144 141'1*%.24 :111'2)1.1)

145 143'3+5.2) :1%+'%3*.13

14* 145'**5.)% :1%*')*5.)1

14) 14)'+)2.%) :1%4'45+.33

14- 15%'314.+* :1%2'11*.44

14+ 152'*+4.+5 :++')3*.45

15% 155'112.*2 :+)'31-.)-

151 15)'5*-.5) :+4'-*2.-3

152 1*%'%*3.41 :+2'3*-.%%

153 1*2'5+).)4 :-+'-33.**

154 1*5'1)2.21 :-)'25+.2%

155 1*)')-).43 :-4'*43.+)

15* 1)%'444.%) :-1'+-).34

15) 1)3'142.)) :)+'2--.*4

15- 1)5'--4.1+ :)*'54).21

15+ 1)-'**+.%3 :)3')*2.3-

1*% 1-1'4+).+5 :)%'+33.45

1*1 1-4'3)1.*) :*-'%5+.)3

1*2 1-)'2+%.-+ :*5'14%.52


14/54

1*3 1+%'25*.33 :*2'1)5.%-

1*4 1+3'2*-.)2 :5+'1*2.*-

1*5 1+*'32-.-1 :5*'1%2.*%

1** 1++'43).35 :52'++4.%*

1*) 2%2'5+5.11 :4+'-3*.3%

1*- 2%5'-%2.-* :4*'*2-.54

1*+ 2%+'%*1.41 :43'3)%.%%1)% 212'3)1.55 :4%'%5+.-*

1)1 215')34.1% :3*'*+).31

1)2 21+'14+.-+ :33'2-1.52

1)3 222'*1+.)* :2+'-11.*5

1)4 22*'144.5) :2*'2-*.-3

1)5 22+')25.1+ :22')%*.21

1)* 233'3*2.51 :1+'%*-.+%

1)) 23)'%5).42 :15'3)3.++

1)- 24%'-1%.-2 :11'*2%.5-

1)+ 244'*23.** :)'-%).)41-% 24-'4+*.-) :3'+34.53


15/54


16/54


17/54


18/54


19/54

"otal

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%


20/54

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%


21/54

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%


22/54

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%


23/54

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%

252'431.4%252'431.4%


24/54


25/54


26/54


27/54


28/54

De#elo an ann$it% ta&le

;xa"ple

De"onstrate a case o# annuity table usin/ t!e loan calculator

1. 6ll t!e 1-% "ont!s

2. Principal a"ount repaid eac! "ont!3. Interest a"ount paid eac! "ont!

4. 7otal "ont!ly repay"ent

5. 7otal interest paid over t!e ter" o# t!e loan

*. 7otal /ross repay"ents


29/54

1 ?iven t=o invest"ent opportunities to invest @s! 1%%'%%% as #ollo=s

Aption 1 Buy on Can 1 2%1* ixed inco"e security =it! a coupon o# 12

Aption 2 Buy on Can 1 2%1* ixed inco"e security =it! a coupon o# 12

'hich otion is &etter an wh% (*se E++EC")

1%%'%%% 12 12'%%%1%%'%%% 3 3'%%% 2)5.%%

1%%'%%% 3 3'%%% 1-4.%%

1%%'%%% 3 3'%%% +2.%%

1%%'%%% 3 3'%%%

12'%%% 551

Ese ,


30/54

12

13

14

15

1*

1)

1-1+

2%

21

22

23

24

25

2*

2)

2-2+

3%

31

32

33

34

35

3*

3)

3-

3+

4%

41

42

43

44

45

4*

4)

4-

4+

5%

51

52

53

54

55

5*


31/54

5)

5-

5+

*%

*1

*2

*3*4

*5

**

*)

*-

*+

)%

)1

)2

)3)4

)5

)*

))

)-

)+

-%

-1

-2

-3

-4

-5

-*

-)

--

-+

+%

+1

+2

+3

+4

+5

+*

+)

+-

++

1%%

1%1


32/54

1%2

1%3

1%4

1%5

1%*

1%)

1%-1%+

11%

111

112

113

114

115

11*

11)

11-11+

12%

121

122

123

124

125

12*

12)

12-

12+

13%

131

132

133

134

135

13*

13)

13-

13+

14%

141

142

143

144

145

14*


33/54

14)

14-

14+

15%

151

152

153154

155

15*

15)

15-

15+

1*%

1*1

1*2

1*31*4

1*5

1**

1*)

1*-

1*+

1)%

1)1

1)2

1)3

1)4

1)5

1)*

1))

1)-

1)+

1-%

1-1

1-2

1-3

1-4

1-5

1-*

1-)

1--

1-+

1+%

1+1


34/54

1+2

1+3

1+4

1+5

1+*

1+)

1+-1++

2%%

2%1

2%2

2%3

2%4

2%5

2%*

2%)

2%-2%+

21%

211

212

213

214

215

21*

21)

21-

21+

22%

221

222

223

224

225

22*

22)

22-

22+

23%

231

232

233

234

235

23*


35/54

23)

23-

23+

24%

241

242

243244

245

24*

24)

24-

24+

25%

251

252

253254

255

25*

25)

25-

25+

2*%

2*1

2*2

2*3

2*4

2*5

2**

2*)

2*-

2*+

2)%

2)1

2)2

2)3

2)4

2)5

2)*

2))

2)-

2)+

2-%

2-1


36/54

2-2

2-3

2-4

2-5

2-*

2-)

2--2-+

2+%

2+1

2+2

2+3

2+4

2+5

2+*

2+)

2+-2++

3%%


37/54

p.a payable only once on 31Dec2%1*

p.a &3 instal"ent payable uarterly o# 319ar' 3%Cun'3%


38/54

1.5% 3'-34'51+

1.5% 3')))'-51

1.5% 3')22'%21

1.5% 3'**)'%1*

1.5% 3'*12'-24

1.5% 3'55+'432

1.5% 3'5%*'-3%1.5% 3'455'%%5

1.5% 3'4%3'+45

1.5% 3'353'*41

1.5% 3'3%4'%-%

1.5% 3'255'251

1.5% 3'2%)'144

1.5% 3'15+')4)

1.5% 3'113'%52

1.5% 3'%*)'%4*

1.5% 3'%21')2%1.5% 2'+))'%*4

1.5% 2'+33'%*-

1.5% 2'--+')22

1.5% 2'-4)'%1)

1.5% 2'-%4'+43

1.5% 2')*3'4+1

1.5% 2')22'*51

1.5% 2'*-2'415

1.5% 2'*42'))3

1.5% 2'*%3')1)

1.5% 2'5*5'23+

1.5% 2'52)'32+

1.5% 2'4-+'+)+

1.5% 2'453'1-1

1.5% 2'41*'+2)

1.5% 2'3-1'2%+

1.5% 2'34*'%1+

1.5% 2'311'34+

1.5% 2'2))'1+1

1.5% 2'243'53-

1.5% 2'21%'3-2

1.5% 2'1))')1*

1.5% 2'145'533

1.5% 2'113'-2*

1.5% 2'%-2'5-)

1.5% 2'%51'-1%

1.5% 2'%21'4--

1.5% 1'++1'*13


39/54

1.5% 1'+*2'1-1

1.5% 1'+33'1-3

1.5% 1'+%4'*14

1.5% 1'-)*'4*)

1.5% 1'-4-')3*

1.5% 1'-21'415

1.5% 1')+4'4+)1.5% 1')*)'+))

1.5% 1')41'-5%

1.5% 1')1*'1%-

1.5% 1'*+%')4)

1.5% 1'**5')*%

1.5% 1'*41'143

1.5% 1'*1*'-+%

1.5% 1'5+2'++5

1.5% 1'5*+'453

1.5% 1'54*'25+1.5% 1'523'4%-

1.5% 1'5%%'-+5

1.5% 1'4)-')14

1.5% 1'45*'-*1

1.5% 1'435'331

1.5% 1'414'11+

1.5% 1'3+3'221

1.5% 1'3)2'*32

1.5% 1'352'34*

1.5% 1'332'3*1

1.5% 1'312'*)1

1.5% 1'2+3'2)2

1.5% 1'2)4'15+

1.5% 1'255'33%

1.5% 1'23*'))-

1.5% 1'21-'5%%

1.5% 1'2%%'4+3

1.5% 1'1-2')52

1.5% 1'1*5'2)3

1.5% 1'14-'%52

1.5% 1'131'%-*

1.5% 1'114'3)%

1.5% 1'%+)'+%1

1.5% 1'%-1'*)*

1.5% 1'%*5'*+1

1.5% 1'%4+'+42

1.5% 1'%34'425

1.5% 1'%1+'13-


40/54

1.5% 1'%%4'%))

1.5% +-+'23+

1.5% +)4'*1+

1.5% +*%'21*

1.5% +4*'%2*

1.5% +32'%45

1.5% +1-'2)11.5% +%4')%%

1.5% -+1'331

1.5% -)-'15-

1.5% -*5'1-%

1.5% -52'3+5

1.5% -3+')+-

1.5% -2)'3-)

1.5% -15'15+

1.5% -%3'113

1.5% )+1'2441.5% ))+'551

1.5% )*-'%3%

1.5% )5*'*-%

1.5% )45'4+-

1.5% )34'4-%

1.5% )23'*2*

1.5% )12'+32

1.5% )%2'3+*

1.5% *+2'%1*

1.5% *-1')-+

1.5% *)1')13

1.5% **1')-)

1.5% *52'%%*

1.5% *42'3)1

1.5% *32'-)-

1.5% *23'525

1.5% *14'31%

1.5% *%5'232

1.5% 5+*'2-)

1.5% 5-)'4)5

1.5% 5)-')+3

1.5% 5)%'24%

1.5% 5*1'-13

1.5% 553'51%

1.5% 545'33%

1.5% 53)'2)1

1.5% 52+'331

1.5% 521'5%-


41/54

1.5% 513'-%1

1.5% 5%*'2%-

1.5% 4+-')2)

1.5% 4+1'35)

1.5% 4-4'%+*

1.5% 4)*'+41

1.5% 4*+'-+31.5% 4*2'+4+

1.5% 45*'1%)

1.5% 44+'3*)

1.5% 442')2*

1.5% 43*'1-3

1.5% 42+')3)

1.5% 423'3-*

1.5% 41)'12+

1.5% 41%'+*5

1.5% 4%4'-+11.5% 3+-'+%-

1.5% 3+3'%13

1.5% 3-)'2%5

1.5% 3-1'4-2

1.5% 3)5'-45

1.5% 3)%'2+%

1.5% 3*4'-1-

1.5% 35+'42)

1.5% 354'115

1.5% 34-'--2

1.5% 343')2*

1.5% 33-'*4*

1.5% 333'*41

1.5% 32-')11

1.5% 323'-53

1.5% 31+'%*)

1.5% 314'352

1.5% 3%+')%*

1.5% 3%5'12+

1.5% 3%%'*2%

1.5% 2+*'1))

1.5% 2+1'-%%

1.5% 2-)'4--

1.5% 2-3'23+

1.5% 2)+'%54

1.5% 2)4'+3%

1.5% 2)%'-*)

1.5% 2**'-*4


42/54

1.5% 2*2'+2%

1.5% 25+'%34

1.5% 255'2%*

1.5% 251'435

1.5% 24)')1+

1.5% 244'%5-

1.5% 24%'4511.5% 23*'-+-

1.5% 233'3+)

1.5% 22+'+4-

1.5% 22*'54+

1.5% 223'2%1

1.5% 21+'+%3

1.5% 21*'*53

1.5% 213'451

1.5% 21%'2+)

1.5% 2%)'1-+1.5% 2%4'12)

1.5% 2%1'11%

1.5% 1+-'13-

1.5% 1+5'21%

1.5% 1+2'325

1.5% 1-+'4-3

1.5% 1-*'*-3

1.5% 1-3'+24

1.5% 1-1'2%*

1.5% 1)-'52-

1.5% 1)5'-+%

1.5% 1)3'2+%

1.5% 1)%')2+

1.5% 1*-'2%*

1.5% 1*5')2%

1.5% 1*3'2)1

1.5% 1*%'-5-

1.5% 15-'4-1

1.5% 15*'13+

1.5% 153'-32

1.5% 151'55-

1.5% 14+'31+

1.5% 14)'112

1.5% 144'+3-

1.5% 142')+*

1.5% 14%'*-*

1.5% 13-'*%*

1.5% 13*'55-


43/54

1.5% 134'54%

1.5% 132'552

1.5% 13%'5+3

1.5% 12-'**3

1.5% 12*')*1

1.5% 124'---

1.5% 123'%431.5% 121'224

1.5% 11+'433

1.5% 11)'**-

1.5% 115'+2+

1.5% 114'215

1.5% 112'52-

1.5% 11%'-*5

1.5% 1%+'22*

1.5% 1%)'*12

1.5% 1%*'%221.5% 1%4'455

1.5% 1%2'+11

1.5% 1%1'3+%

1.5% ++'-+2

1.5% +-'41*

1.5% +*'+*1

1.5% +5'52-

1.5% +4'11)

1.5% +2')2*

1.5% +1'355

1.5% +%'%%5

1.5% --'*)5

1.5% -)'3*5

1.5% -*'%)4

1.5% -4'-%2

1.5% -3'54-

1.5% -2'314

1.5% -1'%+)

1.5% )+'-++

1.5% )-')1-

1.5% ))'555

1.5% )*'4%+

1.5% )5'2)+

1.5% )4'1*)

1.5% )3'%)1

1.5% )1'++1

1.5% )%'+2)

1.5% *+'-)+


44/54

1.5% *-'-4*

1.5% *)'-2+

1.5% **'-2*

1.5% *5'-3+

1.5% *4'-**

1.5% *3'+%)

1.5% *2'+*31.5% *2'%32

1.5% *1'115

1.5% *%'212

1.5% 5+'322

1.5% 5-'44*

1.5% 5)'5-2

1.5% 5*')31

1.5% 55'-+3

1.5% 55'%*)

1.5% 54'2531.5% 53'451

1.5% 52'**1

3%2'13%'*44


45/54

(

s assu"ed to be 3*% days


46/54


47/54


48/54


49/54


50/54


51/54


52/54


53/54

1 ?iven t=o invest"ent opportunities to invest @s! 1%%'%%% as #ollo=s

Aption 1 Buy on Can 1 2%1* ixed inco"e security =it! a coupon o# 12 p.a paya

Aption 2 Buy on Can 1 2%1* ixed inco"e security =it! a coupon o# 12 p.a &3 i

!ic! option is better and =!y$

2 Deter"ine t!e uture value o# your !ouse repay"ent and co"pare =it! t!e true value o

Interest Pa 1-0ost o# !ouse n 5'%%%'%%%

9ont!ly pay"e 52'**1

oan period 3%%

IN,;


54/54

ble only once on 31Dec2%1*

instal"ent payable uarterly o# 319ar' 3%Cun'3%

Documents

Copy of Lesson 2 Sheikskush