Loan Data

Loan Amount
Annual Int. Rate
Loan Period (yrs)
# Of Annual Pymts
Start Date
Annual Pymt:
Pymnt per period
Total # of Pymts

Period
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

100,000,000
4%
30
12
8/1/2013
$5,728,984
$477,415
360

Date
8/1/2013
9/1/2013
10/1/2013
11/1/2013
12/1/2013
1/1/2014
2/1/2014
3/1/2014
4/1/2014
5/1/2014
6/1/2014
7/1/2014
8/1/2014
9/1/2014
10/1/2014
11/1/2014
12/1/2014
1/1/2015
2/1/2015
3/1/2015
4/1/2015
5/1/2015
6/1/2015
7/1/2015
8/1/2015
9/1/2015
10/1/2015
11/1/2015
12/1/2015
1/1/2016
2/1/2016
3/1/2016
4/1/2016
5/1/2016

Payment
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415

Interest
$333,333
$332,853
$332,371
$331,888
$331,403
$330,916
$330,428
$329,938
$329,446
$328,953
$328,458
$327,961
$327,463
$326,963
$326,462
$325,959
$325,454
$324,947
$324,439
$323,929
$323,418
$322,904
$322,389
$321,872
$321,354
$320,834
$320,312
$319,788
$319,263
$318,736
$318,207
$317,676
$317,143

Principal
$144,082
$144,562
$145,044
$145,528
$146,013
$146,499
$146,988
$147,478
$147,969
$148,463
$148,957
$149,454
$149,952
$150,452
$150,953
$151,457
$151,961
$152,468
$152,976
$153,486
$153,998
$154,511
$155,026
$155,543
$156,061
$156,582
$157,104
$157,627
$158,153
$158,680
$159,209
$159,739
$160,272

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

6/1/2016
7/1/2016
8/1/2016
9/1/2016
10/1/2016
11/1/2016
12/1/2016
1/1/2017
2/1/2017
3/1/2017
4/1/2017
5/1/2017
6/1/2017
7/1/2017
8/1/2017
9/1/2017
10/1/2017
11/1/2017
12/1/2017
1/1/2018
2/1/2018
3/1/2018
4/1/2018
5/1/2018
6/1/2018
7/1/2018
8/1/2018
9/1/2018
10/1/2018
11/1/2018
12/1/2018
1/1/2019
2/1/2019
3/1/2019
4/1/2019
5/1/2019
6/1/2019
7/1/2019
8/1/2019
9/1/2019
10/1/2019
11/1/2019
12/1/2019
1/1/2020
2/1/2020
3/1/2020
4/1/2020

$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415

$316,609
$316,073
$315,535
$314,996
$314,454
$313,911
$313,366
$312,819
$312,271
$311,720
$311,168
$310,614
$310,058
$309,500
$308,940
$308,379
$307,815
$307,250
$306,683
$306,113
$305,542
$304,970
$304,395
$303,818
$303,239
$302,659
$302,076
$301,492
$300,905
$300,317
$299,727
$299,134
$298,540
$297,944
$297,346
$296,745
$296,143
$295,539
$294,933
$294,324
$293,714
$293,102
$292,487
$291,871
$291,252
$290,632
$290,009

$160,806
$161,342
$161,880
$162,420
$162,961
$163,504
$164,049
$164,596
$165,145
$165,695
$166,247
$166,802
$167,358
$167,915
$168,475
$169,037
$169,600
$170,166
$170,733
$171,302
$171,873
$172,446
$173,021
$173,597
$174,176
$174,757
$175,339
$175,924
$176,510
$177,098
$177,689
$178,281
$178,875
$179,472
$180,070
$180,670
$181,272
$181,876
$182,483
$183,091
$183,701
$184,314
$184,928
$185,544
$186,163
$186,783
$187,406

81
82
83
84

5/1/2020
6/1/2020
7/1/2020
8/1/2020

$477,415
$477,415
$477,415
$477,415
$40,102,885

$289,385
$288,758
$288,129
$287,498
$26,162,356

$188,031
$188,658
$189,286
$189,917
$13,940,529

85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120

9/1/2020
10/1/2020
11/1/2020
12/1/2020
1/1/2021
2/1/2021
3/1/2021
4/1/2021
5/1/2021
6/1/2021
7/1/2021
8/1/2021
9/1/2021
10/1/2021
11/1/2021
12/1/2021
1/1/2022
2/1/2022
3/1/2022
4/1/2022
5/1/2022
6/1/2022
7/1/2022
8/1/2022
9/1/2022
10/1/2022
11/1/2022
12/1/2022
1/1/2023
2/1/2023
3/1/2023
4/1/2023
5/1/2023
6/1/2023
7/1/2023
8/1/2023

$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$477,415
$17,186,951
$57,289,835

$286,865
$286,230
$285,592
$284,953
$284,312
$283,668
$283,022
$282,374
$281,724
$281,072
$280,417
$279,760
$279,102
$278,441
$277,777
$277,112
$276,444
$275,774
$275,102
$274,428
$273,751
$273,072
$272,391
$271,708
$271,022
$270,334
$269,644
$268,951
$268,256
$267,559
$266,860
$266,158
$265,454
$264,747
$264,038
$263,327
$9,911,439
$36,073,795

$190,550
$191,186
$191,823
$192,462
$193,104
$193,747
$194,393
$195,041
$195,691
$196,344
$196,998
$197,655
$198,314
$198,975
$199,638
$200,303
$200,971
$201,641
$202,313
$202,988
$203,664
$204,343
$205,024
$205,708
$206,393
$207,081
$207,772
$208,464
$209,159
$209,856
$210,556
$211,258
$211,962
$212,668
$213,377
$214,088
$7,275,512
$21,216,041

Total 10 Years

P (7 years)

P (3 years)

$40,102,885

i (7 years)

$17,186,951

i (3 years)

$26,162,356

(F) Future Value

(p) Payment amount per period
(i) Annual Interest Rate
(n) Total number of periods
(L) Initial Loan Amount
(N) Specific number of periods

P(10 years)

$57,289,835

i (10 years)

$9,911,439

$36,073,795

$477,415
4%
360
100,000,000
84

477,415

331,349,801

86,059,471

Loan Data
Loan Amount
$ 100,000,000
Annual Int. Rate
4.50%
Loan Period (yrs)
30
# Of Annual Pymts
12
Start Date
8/1/2013
Annual Pymt:
$6,080,224
Pymnt per period
$506,685
Total # of Pymts
360

Balance
$100,000,000
$99,855,918
$99,711,356
$99,566,312
$99,420,784
$99,274,771
$99,128,272
$98,981,284
$98,833,807
$98,685,837
$98,537,375
$98,388,417
$98,238,964
$98,089,011
$97,938,560
$97,787,606
$97,636,150
$97,484,188
$97,331,720
$97,178,744
$97,025,258
$96,871,260
$96,716,749
$96,561,723
$96,406,180
$96,250,118
$96,093,537
$95,936,433
$95,778,806
$95,620,654
$95,461,974
$95,302,765
$95,143,026
$94,982,754

Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

Date
8/1/2013
9/1/2013
10/1/2013
11/1/2013
12/1/2013
1/1/2014
2/1/2014
3/1/2014
4/1/2014
5/1/2014
6/1/2014
7/1/2014
8/1/2014
9/1/2014
10/1/2014
11/1/2014
12/1/2014
1/1/2015
2/1/2015
3/1/2015
4/1/2015
5/1/2015
6/1/2015
7/1/2015
8/1/2015
9/1/2015
10/1/2015
11/1/2015
12/1/2015
1/1/2016
2/1/2016
3/1/2016
4/1/2016
5/1/2016

Payment
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685

$94,821,948
$94,660,606
$94,498,726
$94,336,306
$94,173,345
$94,009,841
$93,845,792
$93,681,196
$93,516,051
$93,350,356
$93,184,109
$93,017,307
$92,849,949
$92,682,034
$92,513,559
$92,344,522
$92,174,922
$92,004,756
$91,834,023
$91,662,722
$91,490,849
$91,318,403
$91,145,382
$90,971,785
$90,797,609
$90,622,852
$90,447,513
$90,271,590
$90,095,080
$89,917,981
$89,740,292
$89,562,012
$89,383,136
$89,203,665
$89,023,595
$88,842,925
$88,661,653
$88,479,776
$88,297,294
$88,114,203
$87,930,501
$87,746,188
$87,561,260
$87,375,715
$87,189,552
$87,002,769
$86,815,363

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

6/1/2016
7/1/2016
8/1/2016
9/1/2016
10/1/2016
11/1/2016
12/1/2016
1/1/2017
2/1/2017
3/1/2017
4/1/2017
5/1/2017
6/1/2017
7/1/2017
8/1/2017
9/1/2017
10/1/2017
11/1/2017
12/1/2017
1/1/2018
2/1/2018
3/1/2018
4/1/2018
5/1/2018
6/1/2018
7/1/2018
8/1/2018
9/1/2018
10/1/2018
11/1/2018
12/1/2018
1/1/2019
2/1/2019
3/1/2019
4/1/2019
5/1/2019
6/1/2019
7/1/2019
8/1/2019
9/1/2019
10/1/2019
11/1/2019
12/1/2019
1/1/2020
2/1/2020
3/1/2020
4/1/2020

$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685

$86,627,332
$86,438,675
$86,249,388
$86,059,471

81
82
83
84

5/1/2020
6/1/2020
7/1/2020
8/1/2020

$506,685
$506,685
$506,685
$506,685
$42,561,566

$85,868,920
$85,677,735
$85,485,912
$85,293,450
$85,100,346
$84,906,599
$84,712,205
$84,517,164
$84,321,473
$84,125,129
$83,928,131
$83,730,476
$83,532,162
$83,333,187
$83,133,549
$82,933,246
$82,732,275
$82,530,634
$82,328,320
$82,125,333
$81,921,669
$81,717,326
$81,512,301
$81,306,594
$81,100,201
$80,893,119
$80,685,348
$80,476,884
$80,267,725
$80,057,868
$79,847,313
$79,636,055
$79,424,093
$79,211,425
$78,998,048
$78,783,959

85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120

9/1/2020
10/1/2020
11/1/2020
12/1/2020
1/1/2021
2/1/2021
3/1/2021
4/1/2021
5/1/2021
6/1/2021
7/1/2021
8/1/2021
9/1/2021
10/1/2021
11/1/2021
12/1/2021
1/1/2022
2/1/2022
3/1/2022
4/1/2022
5/1/2022
6/1/2022
7/1/2022
8/1/2022
9/1/2022
10/1/2022
11/1/2022
12/1/2022
1/1/2023
2/1/2023
3/1/2023
4/1/2023
5/1/2023
6/1/2023
7/1/2023
8/1/2023

$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$506,685
$18,240,671
$60,802,237

Total 10 Years

P (7 years)

$42,561,566

i (7 years)
$29,587,850

P (3 years)

$18,240,671

i (3 years)
$11,303,822

Marginal Analysis
Loan Option
A
B
Difference:

The interest rate that makes the p

in annual payment of $375 equal
ending balance given the three ye

Interest
$375,000
$374,506
$374,011
$373,513
$373,014
$372,512
$372,009
$371,504
$370,997
$370,488
$369,978
$369,465
$368,950
$368,434
$367,915
$367,395
$366,873
$366,348
$365,822
$365,294
$364,764
$364,232
$363,697
$363,161
$362,623
$362,083
$361,540
$360,996
$360,450
$359,901
$359,351
$358,798
$358,244

Principal
$131,685
$132,179
$132,675
$133,172
$133,672
$134,173
$134,676
$135,181
$135,688
$136,197
$136,708
$137,220
$137,735
$138,251
$138,770
$139,290
$139,813
$140,337
$140,863
$141,391
$141,922
$142,454
$142,988
$143,524
$144,062
$144,603
$145,145
$145,689
$146,236
$146,784
$147,334
$147,887
$148,441

Balance
$100,000,000
$99,868,315
$99,736,136
$99,603,461
$99,470,288
$99,336,617
$99,202,444
$99,067,768
$98,932,586
$98,796,898
$98,660,701
$98,523,994
$98,386,773
$98,249,038
$98,110,787
$97,972,017
$97,832,727
$97,692,914
$97,552,577
$97,411,714
$97,270,323
$97,128,401
$96,985,947
$96,842,959
$96,699,435
$96,555,373
$96,410,770
$96,265,625
$96,119,936
$95,973,700
$95,826,917
$95,679,582
$95,531,695
$95,383,254

$357,687
$357,128
$356,568
$356,005
$355,440
$354,872
$354,303
$353,732
$353,158
$352,582
$352,005
$351,424
$350,842
$350,258
$349,671
$349,082
$348,491
$347,898
$347,303
$346,705
$346,105
$345,503
$344,899
$344,292
$343,683
$343,072
$342,458
$341,842
$341,224
$340,604
$339,981
$339,356
$338,728
$338,098
$337,466
$336,832
$336,195
$335,555
$334,913
$334,269
$333,623
$332,974
$332,322
$331,669
$331,012
$330,353
$329,692

$148,998
$149,557
$150,118
$150,681
$151,246
$151,813
$152,382
$152,954
$153,527
$154,103
$154,681
$155,261
$155,843
$156,427
$157,014
$157,603
$158,194
$158,787
$159,383
$159,980
$160,580
$161,182
$161,787
$162,393
$163,002
$163,614
$164,227
$164,843
$165,461
$166,082
$166,705
$167,330
$167,957
$168,587
$169,219
$169,854
$170,491
$171,130
$171,772
$172,416
$173,063
$173,712
$174,363
$175,017
$175,673
$176,332
$176,993

$95,234,256
$95,084,699
$94,934,581
$94,783,901
$94,632,655
$94,480,842
$94,328,460
$94,175,506
$94,021,979
$93,867,876
$93,713,195
$93,557,935
$93,402,092
$93,245,664
$93,088,650
$92,931,047
$92,772,853
$92,614,066
$92,454,684
$92,294,703
$92,134,123
$91,972,941
$91,811,154
$91,648,761
$91,485,758
$91,322,144
$91,157,917
$90,993,074
$90,827,613
$90,661,531
$90,494,826
$90,327,497
$90,159,540
$89,990,952
$89,821,733
$89,651,879
$89,481,389
$89,310,259
$89,138,487
$88,966,071
$88,793,008
$88,619,297
$88,444,934
$88,269,917
$88,094,244
$87,917,912
$87,740,919

$329,028
$328,362
$327,694
$327,022
$29,587,850

$177,657
$178,323
$178,992
$179,663
$12,973,716

$87,563,262
$87,384,939
$87,205,947
$87,026,284

$326,349
$325,672
$324,994
$324,312
$323,628
$322,942
$322,253
$321,561
$320,867
$320,170
$319,471
$318,769
$318,064
$317,357
$316,647
$315,934
$315,219
$314,501
$313,780
$313,057
$312,330
$311,602
$310,870
$310,136
$309,399
$308,659
$307,916
$307,171
$306,423
$305,672
$304,918
$304,161
$303,402
$302,640
$301,874
$301,106
$11,303,822
$40,891,672

$180,337
$181,013
$181,692
$182,373
$183,057
$183,744
$184,433
$185,124
$185,818
$186,515
$187,215
$187,917
$188,621
$189,329
$190,039
$190,751
$191,467
$192,185
$192,905
$193,629
$194,355
$195,084
$195,815
$196,550
$197,287
$198,026
$198,769
$199,514
$200,263
$201,014
$201,767
$202,524
$203,283
$204,046
$204,811
$205,579
$6,936,849
$19,910,565

$86,845,947
$86,664,934
$86,483,242
$86,300,869
$86,117,812
$85,934,069
$85,749,636
$85,564,512
$85,378,694
$85,192,178
$85,004,964
$84,817,047
$84,628,426
$84,439,097
$84,249,058
$84,058,307
$83,866,840
$83,674,656
$83,481,750
$83,288,122
$83,093,767
$82,898,683
$82,702,868
$82,506,318
$82,309,032
$82,111,005
$81,912,236
$81,712,722
$81,512,459
$81,311,445
$81,109,678
$80,907,154
$80,703,871
$80,499,825
$80,295,014
$80,089,435

P(10 years)
$60,802,237

i (10 years)
$40,891,672

Interest
Annual
Loan Amount
Rate
Payment
4% $ 100,000,000 $ 477,415
4.50% $ 100,000,000 $ 506,685
0.500% $
$
29,270

interest rate that makes the present value of the difference

nnual payment of $375 equal to the $5,301 difference in the
ing balance given the three year period is:

Loan Balance after 7

Loan Balance After 10
Payment
Years
Years
Years 1-7
$
99,128,272 $
98,685,837 $ 477,415
$
99,202,444 $
98,796,898 $ 506,685
$
74,172 $
111,061 $
29,270

Is it worth saving the $5,302 diffe

balance for a $375 cost per year f
PV:
PMT:

Payment
Years 8-10
0
$ 506,685
$ 506,685

h saving the $5,302 difference in the ending loan

for a $375 cost per year for the next three years?
$ (331,374)
$ 29,270

0
10
20
30

BALANCE

Millions

LOAN PRINCIPAL

7|30 @4%

7|30 @ 4.5%

40

50
MONTHS

60

70

80

80

90