Cashflow and Compounding


Compounding and mortgages

Comparing the effect $5,000 per annum additional repayments has on the end balance

In the table to the right we show a repayment schedule for a $250,000 loan with an interest rate of 6.5% pa.

In this table we assume an annual repayment amount of $25,000.

On the next page we look at the same loan, however, we increase the annual repayment amount by $5,000 to $30,000 per annum.