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You are here: Home / Case studies / Is PruSelect Vantage plan a good or bad product?

Is PruSelect Vantage plan a good or bad product?

14, November 2012 by Wilfred Ling 2 Comments

Last Updated on 20, January 2015

Question: “Hi Wilfred, our Prudential insurance agent has recommended PruSelect Vantage to us with the key benefits indicated below. May we have your views on this please? The PruSelect Vantage plan key benefits:

  • 100% unit allocation from day one
  • First year bonus (applicable for annual premium of $18,000)
  • Loyalty Bonus to reward you who invest diligently
  • withdrawal of units in the Accumulation Account
  • free switching”

Answer: To analyze the product, I need the benefit illustration. Since your Prudential did not give you the benefit illustration but instead a generic product brochure, I can only advice you based on the limited information provided by the brochure that was given to you. In analyzing investments, there are two things you need to find out namely:

  • Expense ratio over the intended time horizon and
  • Liquidity

Most investors look at the potential return of the investments. This is the wrong approach because market returns cannot be known in advance. However, expense ratio and liquidity risks are stable variables which fluctuate very little with the underlying market volatility. As usual, these two information were not readily available. In the past, ‘expense ratio’ of an investment-linked policy used to be disclosed in the benefit illustration and it was called the Reduction in Yield. Unfortunately, this important information was removed in all the investment linked policy benefit illustrations I have seen. No prize for guessing why this important information was removed.

Calculation of Expense ratio

Ideally, the expense ratio of an investment product should not be more than 1.77% because the average expense ratio of unit trust is 0.81% to 1.77% based on CPFIS Funds Report June 2012. To calculate the expense ratio of PruSelect Vantage, I use the page 6 of the attached product brochure. I would have used the actual benefit illustration if it is available. I reproduce of the example from the brochure here:

pruselect vantage plan

The example in the brochure shows two scenarios:

  • Scenario 1: At age 60, he will receive $1,095,353 assuming 8%pa returns before cost.
  • Scenario 2: At age 70, he will receive $1,911,379 assuming 8% pa returns before cost.

I did some calculation using spreadsheet and I found that in Scenario 1, the actual return is 5.20%. The following is the detail table of my spreadsheet:

AgeMonthBegin BalanceCash Flow Ending
3510.002,000 (0 + 2000) x (1 + 5.2%/12) =2,008.67
3522,008.67 2,000 (2008.67 + 2000) x (1 + 5.2%/12) =4,026.04
3534,026.04 2,000 (4026.04 + 2000) x (1 + 5.2%/12) =6,052.16
3546,052.16 2,000 (6052.16 + 2000) x (1 + 5.2%/12) =8,087.05
3558,087.05 2,000 (8087.05 + 2000) x (1 + 5.2%/12) =10,130.77
35610,130.77 2,000 (10130.77 + 2000) x (1 + 5.2%/12) =12,183.34
35712,183.34 2,000 (12183.34 + 2000) x (1 + 5.2%/12) =14,244.81
35814,244.81 2,000 (14244.81 + 2000) x (1 + 5.2%/12) =16,315.21
35916,315.21 2,000 (16315.21 + 2000) x (1 + 5.2%/12) =18,394.58
351018,394.58 2,000 (18394.58 + 2000) x (1 + 5.2%/12) =20,482.97
351120,482.97 2,000 (20482.97 + 2000) x (1 + 5.2%/12) =22,580.41
351222,580.41 2,000 (22580.41 + 2000) x (1 + 5.2%/12) =24,686.93
36124,686.93 2,000 (24686.93 + 2000) x (1 + 5.2%/12) =26,802.59
36226,802.59 2,000 (26802.59 + 2000) x (1 + 5.2%/12) =28,927.41
36328,927.41 2,000 (28927.41 + 2000) x (1 + 5.2%/12) =31,061.45
36431,061.45 2,000 (31061.45 + 2000) x (1 + 5.2%/12) =33,204.73
36533,204.73 2,000 (33204.73 + 2000) x (1 + 5.2%/12) =35,357.30
36635,357.30 2,000 (35357.3 + 2000) x (1 + 5.2%/12) =37,519.20
36737,519.20 2,000 (37519.2 + 2000) x (1 + 5.2%/12) =39,690.47
36839,690.47 2,000 (39690.47 + 2000) x (1 + 5.2%/12) =41,871.15
36941,871.15 2,000 (41871.15 + 2000) x (1 + 5.2%/12) =44,061.27
361044,061.27 2,000 (44061.27 + 2000) x (1 + 5.2%/12) =46,260.89
361146,260.89 2,000 (46260.89 + 2000) x (1 + 5.2%/12) =48,470.05
361248,470.05 2,000 (48470.05 + 2000) x (1 + 5.2%/12) =50,688.77
37150,688.77 2,000 (50688.77 + 2000) x (1 + 5.2%/12) =52,917.12
37252,917.12 2,000 (52917.12 + 2000) x (1 + 5.2%/12) =55,155.12
37355,155.12 2,000 (55155.12 + 2000) x (1 + 5.2%/12) =57,402.82
37457,402.82 2,000 (57402.82 + 2000) x (1 + 5.2%/12) =59,660.26
37559,660.26 2,000 (59660.26 + 2000) x (1 + 5.2%/12) =61,927.48
37661,927.48 2,000 (61927.48 + 2000) x (1 + 5.2%/12) =64,204.53
37764,204.53 2,000 (64204.53 + 2000) x (1 + 5.2%/12) =66,491.45
37866,491.45 2,000 (66491.45 + 2000) x (1 + 5.2%/12) =68,788.27
37968,788.27 2,000 (68788.27 + 2000) x (1 + 5.2%/12) =71,095.06
371071,095.06 2,000 (71095.06 + 2000) x (1 + 5.2%/12) =73,411.84
371173,411.84 2,000 (73411.84 + 2000) x (1 + 5.2%/12) =75,738.66
371275,738.66 2,000 (75738.66 + 2000) x (1 + 5.2%/12) =78,075.56
38178,075.56 2,000 (78075.56 + 2000) x (1 + 5.2%/12) =80,422.59
38280,422.59 2,000 (80422.59 + 2000) x (1 + 5.2%/12) =82,779.79
38382,779.79 2,000 (82779.79 + 2000) x (1 + 5.2%/12) =85,147.21
38485,147.21 2,000 (85147.21 + 2000) x (1 + 5.2%/12) =87,524.89
38587,524.89 2,000 (87524.89 + 2000) x (1 + 5.2%/12) =89,912.87
38689,912.87 2,000 (89912.87 + 2000) x (1 + 5.2%/12) =92,311.21
38792,311.21 2,000 (92311.21 + 2000) x (1 + 5.2%/12) =94,719.93
38894,719.93 2,000 (94719.93 + 2000) x (1 + 5.2%/12) =97,139.10
38997,139.10 2,000 (97139.1 + 2000) x (1 + 5.2%/12) =99,568.75
381099,568.75 2,000 (99568.75 + 2000) x (1 + 5.2%/12) =102,008.93
3811102,008.93 2,000 (102008.93 + 2000) x (1 + 5.2%/12) =104,459.68
3812104,459.68 2,000 (104459.68 + 2000) x (1 + 5.2%/12) =106,921.05
391106,921.05 2,000 (106921.05 + 2000) x (1 + 5.2%/12) =109,393.10
392109,393.10 2,000 (109393.1 + 2000) x (1 + 5.2%/12) =111,875.85
393111,875.85 2,000 (111875.85 + 2000) x (1 + 5.2%/12) =114,369.37
394114,369.37 2,000 (114369.37 + 2000) x (1 + 5.2%/12) =116,873.69
395116,873.69 2,000 (116873.69 + 2000) x (1 + 5.2%/12) =119,388.86
396119,388.86 2,000 (119388.86 + 2000) x (1 + 5.2%/12) =121,914.94
397121,914.94 2,000 (121914.94 + 2000) x (1 + 5.2%/12) =124,451.96
398124,451.96 2,000 (124451.96 + 2000) x (1 + 5.2%/12) =126,999.98
399126,999.98 2,000 (126999.98 + 2000) x (1 + 5.2%/12) =129,559.04
3910129,559.04 2,000 (129559.04 + 2000) x (1 + 5.2%/12) =132,129.19
3911132,129.19 2,000 (132129.19 + 2000) x (1 + 5.2%/12) =134,710.48
3912134,710.48 2,000 (134710.48 + 2000) x (1 + 5.2%/12) =137,302.96
401137,302.96 2,000 (137302.96 + 2000) x (1 + 5.2%/12) =139,906.67
402139,906.67 2,000 (139906.67 + 2000) x (1 + 5.2%/12) =142,521.66
403142,521.66 2,000 (142521.66 + 2000) x (1 + 5.2%/12) =145,147.99
404145,147.99 2,000 (145147.99 + 2000) x (1 + 5.2%/12) =147,785.70
405147,785.70 2,000 (147785.7 + 2000) x (1 + 5.2%/12) =150,434.84
406150,434.84 2,000 (150434.84 + 2000) x (1 + 5.2%/12) =153,095.47
407153,095.47 2,000 (153095.47 + 2000) x (1 + 5.2%/12) =155,767.62
408155,767.62 2,000 (155767.62 + 2000) x (1 + 5.2%/12) =158,451.35
409158,451.35 2,000 (158451.35 + 2000) x (1 + 5.2%/12) =161,146.72
4010161,146.72 2,000 (161146.72 + 2000) x (1 + 5.2%/12) =163,853.76
4011163,853.76 2,000 (163853.76 + 2000) x (1 + 5.2%/12) =166,572.54
4012166,572.54 2,000 (166572.54 + 2000) x (1 + 5.2%/12) =169,303.10
411169,303.10 2,000 (169303.1 + 2000) x (1 + 5.2%/12) =172,045.49
412172,045.49 2,000 (172045.49 + 2000) x (1 + 5.2%/12) =174,799.77
413174,799.77 2,000 (174799.77 + 2000) x (1 + 5.2%/12) =177,565.99
414177,565.99 2,000 (177565.99 + 2000) x (1 + 5.2%/12) =180,344.19
415180,344.19 2,000 (180344.19 + 2000) x (1 + 5.2%/12) =183,134.43
416183,134.43 2,000 (183134.43 + 2000) x (1 + 5.2%/12) =185,936.77
417185,936.77 2,000 (185936.77 + 2000) x (1 + 5.2%/12) =188,751.25
418188,751.25 2,000 (188751.25 + 2000) x (1 + 5.2%/12) =191,577.93
419191,577.93 2,000 (191577.93 + 2000) x (1 + 5.2%/12) =194,416.85
4110194,416.85 2,000 (194416.85 + 2000) x (1 + 5.2%/12) =197,268.09
4111197,268.09 2,000 (197268.09 + 2000) x (1 + 5.2%/12) =200,131.67
4112200,131.67 2,000 (200131.67 + 2000) x (1 + 5.2%/12) =203,007.67
421203,007.67 2,000 (203007.67 + 2000) x (1 + 5.2%/12) =205,896.14
422205,896.14 2,000 (205896.14 + 2000) x (1 + 5.2%/12) =208,797.12
423208,797.12 2,000 (208797.12 + 2000) x (1 + 5.2%/12) =211,710.67
424211,710.67 2,000 (211710.67 + 2000) x (1 + 5.2%/12) =214,636.85
425214,636.85 2,000 (214636.85 + 2000) x (1 + 5.2%/12) =217,575.71
426217,575.71 2,000 (217575.71 + 2000) x (1 + 5.2%/12) =220,527.31
427220,527.31 2,000 (220527.31 + 2000) x (1 + 5.2%/12) =223,491.70
428223,491.70 2,000 (223491.7 + 2000) x (1 + 5.2%/12) =226,468.93
429226,468.93 2,000 (226468.93 + 2000) x (1 + 5.2%/12) =229,459.07
4210229,459.07 2,000 (229459.07 + 2000) x (1 + 5.2%/12) =232,462.17
4211232,462.17 2,000 (232462.17 + 2000) x (1 + 5.2%/12) =235,478.28
4212235,478.28 2,000 (235478.28 + 2000) x (1 + 5.2%/12) =238,507.47
431238,507.47 2,000 (238507.47 + 2000) x (1 + 5.2%/12) =241,549.78
432241,549.78 2,000 (241549.78 + 2000) x (1 + 5.2%/12) =244,605.27
433244,605.27 2,000 (244605.27 + 2000) x (1 + 5.2%/12) =247,674.01
434247,674.01 2,000 (247674.01 + 2000) x (1 + 5.2%/12) =250,756.05
435250,756.05 2,000 (250756.05 + 2000) x (1 + 5.2%/12) =253,851.44
436253,851.44 2,000 (253851.44 + 2000) x (1 + 5.2%/12) =256,960.25
437256,960.25 2,000 (256960.25 + 2000) x (1 + 5.2%/12) =260,082.53
438260,082.53 2,000 (260082.53 + 2000) x (1 + 5.2%/12) =263,218.35
439263,218.35 2,000 (263218.35 + 2000) x (1 + 5.2%/12) =266,367.75
4310266,367.75 2,000 (266367.75 + 2000) x (1 + 5.2%/12) =269,530.80
4311269,530.80 2,000 (269530.8 + 2000) x (1 + 5.2%/12) =272,707.57
4312272,707.57 2,000 (272707.57 + 2000) x (1 + 5.2%/12) =275,898.09
441275,898.09 2,000 (275898.09 + 2000) x (1 + 5.2%/12) =279,102.45
442279,102.45 2,000 (279102.45 + 2000) x (1 + 5.2%/12) =282,320.69
443282,320.69 2,000 (282320.69 + 2000) x (1 + 5.2%/12) =285,552.88
444285,552.88 2,000 (285552.88 + 2000) x (1 + 5.2%/12) =288,799.08
445288,799.08 2,000 (288799.08 + 2000) x (1 + 5.2%/12) =292,059.34
446292,059.34 2,000 (292059.34 + 2000) x (1 + 5.2%/12) =295,333.74
447295,333.74 2,000 (295333.74 + 2000) x (1 + 5.2%/12) =298,622.32
448298,622.32 2,000 (298622.32 + 2000) x (1 + 5.2%/12) =301,925.16
449301,925.16 2,000 (301925.16 + 2000) x (1 + 5.2%/12) =305,242.31
4410305,242.31 2,000 (305242.31 + 2000) x (1 + 5.2%/12) =308,573.84
4411308,573.84 2,000 (308573.84 + 2000) x (1 + 5.2%/12) =311,919.80
4412311,919.80 2,000 (311919.8 + 2000) x (1 + 5.2%/12) =315,280.27
451315,280.27 2,000 (315280.27 + 2000) x (1 + 5.2%/12) =318,655.30
452318,655.30 2,000 (318655.3 + 2000) x (1 + 5.2%/12) =322,044.96
453322,044.96 2,000 (322044.96 + 2000) x (1 + 5.2%/12) =325,449.30
454325,449.30 2,000 (325449.3 + 2000) x (1 + 5.2%/12) =328,868.40
455328,868.40 2,000 (328868.4 + 2000) x (1 + 5.2%/12) =332,302.32
456332,302.32 2,000 (332302.32 + 2000) x (1 + 5.2%/12) =335,751.12
457335,751.12 2,000 (335751.12 + 2000) x (1 + 5.2%/12) =339,214.87
458339,214.87 2,000 (339214.87 + 2000) x (1 + 5.2%/12) =342,693.62
459342,693.62 2,000 (342693.62 + 2000) x (1 + 5.2%/12) =346,187.46
4510346,187.46 2,000 (346187.46 + 2000) x (1 + 5.2%/12) =349,696.43
4511349,696.43 2,000 (349696.43 + 2000) x (1 + 5.2%/12) =353,220.61
4512353,220.61 2,000 (353220.61 + 2000) x (1 + 5.2%/12) =356,760.07
461356,760.07 2,000 (356760.07 + 2000) x (1 + 5.2%/12) =360,314.86
462360,314.86 2,000 (360314.86 + 2000) x (1 + 5.2%/12) =363,885.07
463363,885.07 2,000 (363885.07 + 2000) x (1 + 5.2%/12) =367,470.74
464367,470.74 2,000 (367470.74 + 2000) x (1 + 5.2%/12) =371,071.95
465371,071.95 2,000 (371071.95 + 2000) x (1 + 5.2%/12) =374,688.77
466374,688.77 2,000 (374688.77 + 2000) x (1 + 5.2%/12) =378,321.27
467378,321.27 2,000 (378321.27 + 2000) x (1 + 5.2%/12) =381,969.50
468381,969.50 2,000 (381969.5 + 2000) x (1 + 5.2%/12) =385,633.55
469385,633.55 2,000 (385633.55 + 2000) x (1 + 5.2%/12) =389,313.48
4610389,313.48 2,000 (389313.48 + 2000) x (1 + 5.2%/12) =393,009.35
4611393,009.35 2,000 (393009.35 + 2000) x (1 + 5.2%/12) =396,721.24
4612396,721.24 2,000 (396721.24 + 2000) x (1 + 5.2%/12) =400,449.22
471400,449.22 2,000 (400449.22 + 2000) x (1 + 5.2%/12) =404,193.36
472404,193.36 2,000 (404193.36 + 2000) x (1 + 5.2%/12) =407,953.72
473407,953.72 2,000 (407953.72 + 2000) x (1 + 5.2%/12) =411,730.38
474411,730.38 2,000 (411730.38 + 2000) x (1 + 5.2%/12) =415,523.40
475415,523.40 2,000 (415523.4 + 2000) x (1 + 5.2%/12) =419,332.86
476419,332.86 2,000 (419332.86 + 2000) x (1 + 5.2%/12) =423,158.84
477423,158.84 2,000 (423158.84 + 2000) x (1 + 5.2%/12) =427,001.39
478427,001.39 2,000 (427001.39 + 2000) x (1 + 5.2%/12) =430,860.60
479430,860.60 2,000 (430860.6 + 2000) x (1 + 5.2%/12) =434,736.53
4710434,736.53 2,000 (434736.53 + 2000) x (1 + 5.2%/12) =438,629.26
4711438,629.26 2,000 (438629.26 + 2000) x (1 + 5.2%/12) =442,538.86
4712442,538.86 2,000 (442538.86 + 2000) x (1 + 5.2%/12) =446,465.40
481446,465.40 2,000 (446465.4 + 2000) x (1 + 5.2%/12) =450,408.96
482450,408.96 2,000 (450408.96 + 2000) x (1 + 5.2%/12) =454,369.61
483454,369.61 2,000 (454369.61 + 2000) x (1 + 5.2%/12) =458,347.43
484458,347.43 2,000 (458347.43 + 2000) x (1 + 5.2%/12) =462,342.48
485462,342.48 2,000 (462342.48 + 2000) x (1 + 5.2%/12) =466,354.85
486466,354.85 2,000 (466354.85 + 2000) x (1 + 5.2%/12) =470,384.61
487470,384.61 2,000 (470384.61 + 2000) x (1 + 5.2%/12) =474,431.83
488474,431.83 2,000 (474431.83 + 2000) x (1 + 5.2%/12) =478,496.59
489478,496.59 2,000 (478496.59 + 2000) x (1 + 5.2%/12) =482,578.96
4810482,578.96 2,000 (482578.96 + 2000) x (1 + 5.2%/12) =486,679.03
4811486,679.03 2,000 (486679.03 + 2000) x (1 + 5.2%/12) =490,796.87
4812490,796.87 2,000 (490796.87 + 2000) x (1 + 5.2%/12) =494,932.56
491494,932.56 2,000 (494932.56 + 2000) x (1 + 5.2%/12) =499,086.16
492499,086.16 2,000 (499086.16 + 2000) x (1 + 5.2%/12) =503,257.77
493503,257.77 2,000 (503257.77 + 2000) x (1 + 5.2%/12) =507,447.46
494507,447.46 2,000 (507447.46 + 2000) x (1 + 5.2%/12) =511,655.30
495511,655.30 2,000 (511655.3 + 2000) x (1 + 5.2%/12) =515,881.38
496515,881.38 2,000 (515881.38 + 2000) x (1 + 5.2%/12) =520,125.78
497520,125.78 2,000 (520125.78 + 2000) x (1 + 5.2%/12) =524,388.57
498524,388.57 2,000 (524388.57 + 2000) x (1 + 5.2%/12) =528,669.83
499528,669.83 2,000 (528669.83 + 2000) x (1 + 5.2%/12) =532,969.65
4910532,969.65 2,000 (532969.65 + 2000) x (1 + 5.2%/12) =537,288.10
4911537,288.10 2,000 (537288.1 + 2000) x (1 + 5.2%/12) =541,625.27
4912541,625.27 2,000 (541625.27 + 2000) x (1 + 5.2%/12) =545,981.23
501545,981.23 2,000 (545981.23 + 2000) x (1 + 5.2%/12) =550,356.07
502550,356.07 2,000 (550356.07 + 2000) x (1 + 5.2%/12) =554,749.87
503554,749.87 2,000 (554749.87 + 2000) x (1 + 5.2%/12) =559,162.72
504559,162.72 2,000 (559162.72 + 2000) x (1 + 5.2%/12) =563,594.68
505563,594.68 2,000 (563594.68 + 2000) x (1 + 5.2%/12) =568,045.86
506568,045.86 2,000 (568045.86 + 2000) x (1 + 5.2%/12) =572,516.32
507572,516.32 2,000 (572516.32 + 2000) x (1 + 5.2%/12) =577,006.16
508577,006.16 2,000 (577006.16 + 2000) x (1 + 5.2%/12) =581,515.46
509581,515.46 2,000 (581515.46 + 2000) x (1 + 5.2%/12) =586,044.30
5010586,044.30 2,000 (586044.3 + 2000) x (1 + 5.2%/12) =590,592.77
5011590,592.77 2,000 (590592.77 + 2000) x (1 + 5.2%/12) =595,160.95
5012595,160.95 2,000 (595160.95 + 2000) x (1 + 5.2%/12) =599,748.92
511599,748.92 2,000 (599748.92 + 2000) x (1 + 5.2%/12) =604,356.78
512604,356.78 2,000 (604356.78 + 2000) x (1 + 5.2%/12) =608,984.61
513608,984.61 2,000 (608984.61 + 2000) x (1 + 5.2%/12) =613,632.50
514613,632.50 2,000 (613632.5 + 2000) x (1 + 5.2%/12) =618,300.53
515618,300.53 2,000 (618300.53 + 2000) x (1 + 5.2%/12) =622,988.79
516622,988.79 2,000 (622988.79 + 2000) x (1 + 5.2%/12) =627,697.37
517627,697.37 2,000 (627697.37 + 2000) x (1 + 5.2%/12) =632,426.35
518632,426.35 2,000 (632426.35 + 2000) x (1 + 5.2%/12) =637,175.83
519637,175.83 2,000 (637175.83 + 2000) x (1 + 5.2%/12) =641,945.89
5110641,945.89 2,000 (641945.89 + 2000) x (1 + 5.2%/12) =646,736.62
5111646,736.62 2,000 (646736.62 + 2000) x (1 + 5.2%/12) =651,548.12
5112651,548.12 2,000 (651548.12 + 2000) x (1 + 5.2%/12) =656,380.46
521656,380.46 2,000 (656380.46 + 2000) x (1 + 5.2%/12) =661,233.75
522661,233.75 2,000 (661233.75 + 2000) x (1 + 5.2%/12) =666,108.08
523666,108.08 2,000 (666108.08 + 2000) x (1 + 5.2%/12) =671,003.53
524671,003.53 2,000 (671003.53 + 2000) x (1 + 5.2%/12) =675,920.19
525675,920.19 2,000 (675920.19 + 2000) x (1 + 5.2%/12) =680,858.16
526680,858.16 2,000 (680858.16 + 2000) x (1 + 5.2%/12) =685,817.53
527685,817.53 2,000 (685817.53 + 2000) x (1 + 5.2%/12) =690,798.40
528690,798.40 2,000 (690798.4 + 2000) x (1 + 5.2%/12) =695,800.85
529695,800.85 2,000 (695800.85 + 2000) x (1 + 5.2%/12) =700,824.98
5210700,824.98 2,000 (700824.98 + 2000) x (1 + 5.2%/12) =705,870.88
5211705,870.88 2,000 (705870.88 + 2000) x (1 + 5.2%/12) =710,938.65
5212710,938.65 2,000 (710938.65 + 2000) x (1 + 5.2%/12) =716,028.39
531716,028.39 2,000 (716028.39 + 2000) x (1 + 5.2%/12) =721,140.18
532721,140.18 2,000 (721140.18 + 2000) x (1 + 5.2%/12) =726,274.12
533726,274.12 2,000 (726274.12 + 2000) x (1 + 5.2%/12) =731,430.32
534731,430.32 2,000 (731430.32 + 2000) x (1 + 5.2%/12) =736,608.86
535736,608.86 2,000 (736608.86 + 2000) x (1 + 5.2%/12) =741,809.85
536741,809.85 2,000 (741809.85 + 2000) x (1 + 5.2%/12) =747,033.37
537747,033.37 2,000 (747033.37 + 2000) x (1 + 5.2%/12) =752,279.53
538752,279.53 2,000 (752279.53 + 2000) x (1 + 5.2%/12) =757,548.43
539757,548.43 2,000 (757548.43 + 2000) x (1 + 5.2%/12) =762,840.16
5310762,840.16 2,000 (762840.16 + 2000) x (1 + 5.2%/12) =768,154.83
5311768,154.83 2,000 (768154.83 + 2000) x (1 + 5.2%/12) =773,492.52
5312773,492.52 2,000 (773492.52 + 2000) x (1 + 5.2%/12) =778,853.35
541778,853.35 2,000 (778853.35 + 2000) x (1 + 5.2%/12) =784,237.42
542784,237.42 2,000 (784237.42 + 2000) x (1 + 5.2%/12) =789,644.81
543789,644.81 2,000 (789644.81 + 2000) x (1 + 5.2%/12) =795,075.65
544795,075.65 2,000 (795075.65 + 2000) x (1 + 5.2%/12) =800,530.01
545800,530.01 2,000 (800530.01 + 2000) x (1 + 5.2%/12) =806,008.02
546806,008.02 2,000 (806008.02 + 2000) x (1 + 5.2%/12) =811,509.76
547811,509.76 2,000 (811509.76 + 2000) x (1 + 5.2%/12) =817,035.35
548817,035.35 2,000 (817035.35 + 2000) x (1 + 5.2%/12) =822,584.89
549822,584.89 2,000 (822584.89 + 2000) x (1 + 5.2%/12) =828,158.48
5410828,158.48 2,000 (828158.48 + 2000) x (1 + 5.2%/12) =833,756.22
5411833,756.22 2,000 (833756.22 + 2000) x (1 + 5.2%/12) =839,378.22
5412839,378.22 2,000 (839378.22 + 2000) x (1 + 5.2%/12) =845,024.59
551845,024.59 0(845024.59 + 0) x (1 + 5.2%/12) =848,686.75
552848,686.75 0(848686.75 + 0) x (1 + 5.2%/12) =852,364.79
553852,364.79 0(852364.79 + 0) x (1 + 5.2%/12) =856,058.77
554856,058.77 0(856058.77 + 0) x (1 + 5.2%/12) =859,768.76
555859,768.76 0(859768.76 + 0) x (1 + 5.2%/12) =863,494.83
556863,494.83 0(863494.83 + 0) x (1 + 5.2%/12) =867,237.04
557867,237.04 0(867237.04 + 0) x (1 + 5.2%/12) =870,995.48
558870,995.48 0(870995.48 + 0) x (1 + 5.2%/12) =874,770.20
559874,770.20 0(874770.2 + 0) x (1 + 5.2%/12) =878,561.28
5510878,561.28 0(878561.28 + 0) x (1 + 5.2%/12) =882,368.79
5511882,368.79 0(882368.79 + 0) x (1 + 5.2%/12) =886,192.80
5512886,192.80 0(886192.8 + 0) x (1 + 5.2%/12) =890,033.38
561890,033.38 0(890033.38 + 0) x (1 + 5.2%/12) =893,890.61
562893,890.61 0(893890.61 + 0) x (1 + 5.2%/12) =897,764.56
563897,764.56 0(897764.56 + 0) x (1 + 5.2%/12) =901,655.29
564901,655.29 0(901655.29 + 0) x (1 + 5.2%/12) =905,562.88
565905,562.88 0(905562.88 + 0) x (1 + 5.2%/12) =909,487.41
566909,487.41 0(909487.41 + 0) x (1 + 5.2%/12) =913,428.95
567913,428.95 0(913428.95 + 0) x (1 + 5.2%/12) =917,387.57
568917,387.57 0(917387.57 + 0) x (1 + 5.2%/12) =921,363.35
569921,363.35 0(921363.35 + 0) x (1 + 5.2%/12) =925,356.35
5610925,356.35 0(925356.35 + 0) x (1 + 5.2%/12) =929,366.66
5611929,366.66 0(929366.66 + 0) x (1 + 5.2%/12) =933,394.35
5612933,394.35 0(933394.35 + 0) x (1 + 5.2%/12) =937,439.50
571937,439.50 0(937439.5 + 0) x (1 + 5.2%/12) =941,502.17
572941,502.17 0(941502.17 + 0) x (1 + 5.2%/12) =945,582.46
573945,582.46 0(945582.46 + 0) x (1 + 5.2%/12) =949,680.42
574949,680.42 0(949680.42 + 0) x (1 + 5.2%/12) =953,796.15
575953,796.15 0(953796.15 + 0) x (1 + 5.2%/12) =957,929.71
576957,929.71 0(957929.71 + 0) x (1 + 5.2%/12) =962,081.19
577962,081.19 0(962081.19 + 0) x (1 + 5.2%/12) =966,250.66
578966,250.66 0(966250.66 + 0) x (1 + 5.2%/12) =970,438.20
579970,438.20 0(970438.2 + 0) x (1 + 5.2%/12) =974,643.88
5710974,643.88 0(974643.88 + 0) x (1 + 5.2%/12) =978,867.80
5711978,867.80 0(978867.8 + 0) x (1 + 5.2%/12) =983,110.01
5712983,110.01 0(983110.01 + 0) x (1 + 5.2%/12) =987,370.62
581987,370.62 0(987370.62 + 0) x (1 + 5.2%/12) =991,649.69
582991,649.69 0(991649.69 + 0) x (1 + 5.2%/12) =995,947.30
583995,947.30 0(995947.3 + 0) x (1 + 5.2%/12) =1,000,263.54
5841,000,263.54 0(1000263.54 + 0) x (1 + 5.2%/12) =1,004,598.48
5851,004,598.48 0(1004598.48 + 0) x (1 + 5.2%/12) =1,008,952.21
5861,008,952.21 0(1008952.21 + 0) x (1 + 5.2%/12) =1,013,324.81
5871,013,324.81 0(1013324.81 + 0) x (1 + 5.2%/12) =1,017,716.36
5881,017,716.36 0(1017716.36 + 0) x (1 + 5.2%/12) =1,022,126.94
5891,022,126.94 0(1022126.94 + 0) x (1 + 5.2%/12) =1,026,556.63
58101,026,556.63 0(1026556.63 + 0) x (1 + 5.2%/12) =1,031,005.52
58111,031,005.52 0(1031005.52 + 0) x (1 + 5.2%/12) =1,035,473.70
58121,035,473.70 0(1035473.7 + 0) x (1 + 5.2%/12) =1,039,961.23
5911,039,961.23 0(1039961.23 + 0) x (1 + 5.2%/12) =1,044,468.22
5921,044,468.22 0(1044468.22 + 0) x (1 + 5.2%/12) =1,048,994.74
5931,048,994.74 0(1048994.74 + 0) x (1 + 5.2%/12) =1,053,540.87
5941,053,540.87 0(1053540.87 + 0) x (1 + 5.2%/12) =1,058,106.71
5951,058,106.71 0(1058106.71 + 0) x (1 + 5.2%/12) =1,062,692.33
5961,062,692.33 0(1062692.33 + 0) x (1 + 5.2%/12) =1,067,297.83
5971,067,297.83 0(1067297.83 + 0) x (1 + 5.2%/12) =1,071,923.29
5981,071,923.29 0(1071923.29 + 0) x (1 + 5.2%/12) =1,076,568.79
5991,076,568.79 0(1076568.79 + 0) x (1 + 5.2%/12) =1,081,234.42
59101,081,234.42 0(1081234.42 + 0) x (1 + 5.2%/12) =1,085,920.28
59111,085,920.28 0(1085920.28 + 0) x (1 + 5.2%/12) =1,090,626.44
59121,090,626.44 0(1090626.44 + 0) x (1 + 5.2%/12) =1,095,353.00
6011,095,353.00 ---
Similarly, the return for Scenario 2 is 5.34% and the following is the detail table of my spreadsheet:
AgeMonthBegin BalanceCash Flow-Ending
3510.002,000 (0 + 2000) x (1 + 5.34%/12) =2,008.90
3522,008.90 2,000 (2008.9 + 2000) x (1 + 5.34%/12) =4,026.75
3534,026.75 2,000 (4026.75 + 2000) x (1 + 5.34%/12) =6,053.58
3546,053.58 2,000 (6053.58 + 2000) x (1 + 5.34%/12) =8,089.44
3558,089.44 2,000 (8089.44 + 2000) x (1 + 5.34%/12) =10,134.36
35610,134.36 2,000 (10134.36 + 2000) x (1 + 5.34%/12) =12,188.38
35712,188.38 2,000 (12188.38 + 2000) x (1 + 5.34%/12) =14,251.55
35814,251.55 2,000 (14251.55 + 2000) x (1 + 5.34%/12) =16,323.90
35916,323.90 2,000 (16323.9 + 2000) x (1 + 5.34%/12) =18,405.48
351018,405.48 2,000 (18405.48 + 2000) x (1 + 5.34%/12) =20,496.33
351120,496.33 2,000 (20496.33 + 2000) x (1 + 5.34%/12) =22,596.48
351222,596.48 2,000 (22596.48 + 2000) x (1 + 5.34%/12) =24,705.99
36124,705.99 2,000 (24705.99 + 2000) x (1 + 5.34%/12) =26,824.88
36226,824.88 2,000 (26824.88 + 2000) x (1 + 5.34%/12) =28,953.21
36328,953.21 2,000 (28953.21 + 2000) x (1 + 5.34%/12) =31,091.02
36431,091.02 2,000 (31091.02 + 2000) x (1 + 5.34%/12) =33,238.34
36533,238.34 2,000 (33238.34 + 2000) x (1 + 5.34%/12) =35,395.23
36635,395.23 2,000 (35395.23 + 2000) x (1 + 5.34%/12) =37,561.71
36737,561.71 2,000 (37561.71 + 2000) x (1 + 5.34%/12) =39,737.84
36839,737.84 2,000 (39737.84 + 2000) x (1 + 5.34%/12) =41,923.66
36941,923.66 2,000 (41923.66 + 2000) x (1 + 5.34%/12) =44,119.21
361044,119.21 2,000 (44119.21 + 2000) x (1 + 5.34%/12) =46,324.54
361146,324.54 2,000 (46324.54 + 2000) x (1 + 5.34%/12) =48,539.68
361248,539.68 2,000 (48539.68 + 2000) x (1 + 5.34%/12) =50,764.69
37150,764.69 2,000 (50764.69 + 2000) x (1 + 5.34%/12) =52,999.60
37252,999.60 2,000 (52999.6 + 2000) x (1 + 5.34%/12) =55,244.46
37355,244.46 2,000 (55244.46 + 2000) x (1 + 5.34%/12) =57,499.32
37457,499.32 2,000 (57499.32 + 2000) x (1 + 5.34%/12) =59,764.22
37559,764.22 2,000 (59764.22 + 2000) x (1 + 5.34%/12) =62,039.19
37662,039.19 2,000 (62039.19 + 2000) x (1 + 5.34%/12) =64,324.30
37764,324.30 2,000 (64324.3 + 2000) x (1 + 5.34%/12) =66,619.58
37866,619.58 2,000 (66619.58 + 2000) x (1 + 5.34%/12) =68,925.08
37968,925.08 2,000 (68925.08 + 2000) x (1 + 5.34%/12) =71,240.84
371071,240.84 2,000 (71240.84 + 2000) x (1 + 5.34%/12) =73,566.92
371173,566.92 2,000 (73566.92 + 2000) x (1 + 5.34%/12) =75,903.34
371275,903.34 2,000 (75903.34 + 2000) x (1 + 5.34%/12) =78,250.17
38178,250.17 2,000 (78250.17 + 2000) x (1 + 5.34%/12) =80,607.45
38280,607.45 2,000 (80607.45 + 2000) x (1 + 5.34%/12) =82,975.23
38382,975.23 2,000 (82975.23 + 2000) x (1 + 5.34%/12) =85,353.54
38485,353.54 2,000 (85353.54 + 2000) x (1 + 5.34%/12) =87,742.45
38587,742.45 2,000 (87742.45 + 2000) x (1 + 5.34%/12) =90,141.99
38690,141.99 2,000 (90141.99 + 2000) x (1 + 5.34%/12) =92,552.21
38792,552.21 2,000 (92552.21 + 2000) x (1 + 5.34%/12) =94,973.16
38894,973.16 2,000 (94973.16 + 2000) x (1 + 5.34%/12) =97,404.89
38997,404.89 2,000 (97404.89 + 2000) x (1 + 5.34%/12) =99,847.45
381099,847.45 2,000 (99847.45 + 2000) x (1 + 5.34%/12) =102,300.88
3811102,300.88 2,000 (102300.88 + 2000) x (1 + 5.34%/12) =104,765.23
3812104,765.23 2,000 (104765.23 + 2000) x (1 + 5.34%/12) =107,240.56
391107,240.56 2,000 (107240.56 + 2000) x (1 + 5.34%/12) =109,726.91
392109,726.91 2,000 (109726.91 + 2000) x (1 + 5.34%/12) =112,224.32
393112,224.32 2,000 (112224.32 + 2000) x (1 + 5.34%/12) =114,732.86
394114,732.86 2,000 (114732.86 + 2000) x (1 + 5.34%/12) =117,252.56
395117,252.56 2,000 (117252.56 + 2000) x (1 + 5.34%/12) =119,783.48
396119,783.48 2,000 (119783.48 + 2000) x (1 + 5.34%/12) =122,325.67
397122,325.67 2,000 (122325.67 + 2000) x (1 + 5.34%/12) =124,879.17
398124,879.17 2,000 (124879.17 + 2000) x (1 + 5.34%/12) =127,444.05
399127,444.05 2,000 (127444.05 + 2000) x (1 + 5.34%/12) =130,020.34
3910130,020.34 2,000 (130020.34 + 2000) x (1 + 5.34%/12) =132,608.10
3911132,608.10 2,000 (132608.1 + 2000) x (1 + 5.34%/12) =135,207.39
3912135,207.39 2,000 (135207.39 + 2000) x (1 + 5.34%/12) =137,818.24
401137,818.24 2,000 (137818.24 + 2000) x (1 + 5.34%/12) =140,440.72
402140,440.72 2,000 (140440.72 + 2000) x (1 + 5.34%/12) =143,074.88
403143,074.88 2,000 (143074.88 + 2000) x (1 + 5.34%/12) =145,720.76
404145,720.76 2,000 (145720.76 + 2000) x (1 + 5.34%/12) =148,378.42
405148,378.42 2,000 (148378.42 + 2000) x (1 + 5.34%/12) =151,047.92
406151,047.92 2,000 (151047.92 + 2000) x (1 + 5.34%/12) =153,729.30
407153,729.30 2,000 (153729.3 + 2000) x (1 + 5.34%/12) =156,422.62
408156,422.62 2,000 (156422.62 + 2000) x (1 + 5.34%/12) =159,127.92
409159,127.92 2,000 (159127.92 + 2000) x (1 + 5.34%/12) =161,845.28
4010161,845.28 2,000 (161845.28 + 2000) x (1 + 5.34%/12) =164,574.73
4011164,574.73 2,000 (164574.73 + 2000) x (1 + 5.34%/12) =167,316.33
4012167,316.33 2,000 (167316.33 + 2000) x (1 + 5.34%/12) =170,070.13
411170,070.13 2,000 (170070.13 + 2000) x (1 + 5.34%/12) =172,836.20
412172,836.20 2,000 (172836.2 + 2000) x (1 + 5.34%/12) =175,614.58
413175,614.58 2,000 (175614.58 + 2000) x (1 + 5.34%/12) =178,405.34
414178,405.34 2,000 (178405.34 + 2000) x (1 + 5.34%/12) =181,208.51
415181,208.51 2,000 (181208.51 + 2000) x (1 + 5.34%/12) =184,024.17
416184,024.17 2,000 (184024.17 + 2000) x (1 + 5.34%/12) =186,852.36
417186,852.36 2,000 (186852.36 + 2000) x (1 + 5.34%/12) =189,693.14
418189,693.14 2,000 (189693.14 + 2000) x (1 + 5.34%/12) =192,546.57
419192,546.57 2,000 (192546.57 + 2000) x (1 + 5.34%/12) =195,412.71
4110195,412.71 2,000 (195412.71 + 2000) x (1 + 5.34%/12) =198,291.60
4111198,291.60 2,000 (198291.6 + 2000) x (1 + 5.34%/12) =201,183.31
4112201,183.31 2,000 (201183.31 + 2000) x (1 + 5.34%/12) =204,087.90
421204,087.90 2,000 (204087.9 + 2000) x (1 + 5.34%/12) =207,005.42
422207,005.42 2,000 (207005.42 + 2000) x (1 + 5.34%/12) =209,935.92
423209,935.92 2,000 (209935.92 + 2000) x (1 + 5.34%/12) =212,879.47
424212,879.47 2,000 (212879.47 + 2000) x (1 + 5.34%/12) =215,836.13
425215,836.13 2,000 (215836.13 + 2000) x (1 + 5.34%/12) =218,805.95
426218,805.95 2,000 (218805.95 + 2000) x (1 + 5.34%/12) =221,789.00
427221,789.00 2,000 (221789 + 2000) x (1 + 5.34%/12) =224,785.32
428224,785.32 2,000 (224785.32 + 2000) x (1 + 5.34%/12) =227,794.98
429227,794.98 2,000 (227794.98 + 2000) x (1 + 5.34%/12) =230,818.04
4210230,818.04 2,000 (230818.04 + 2000) x (1 + 5.34%/12) =233,854.57
4211233,854.57 2,000 (233854.57 + 2000) x (1 + 5.34%/12) =236,904.61
4212236,904.61 2,000 (236904.61 + 2000) x (1 + 5.34%/12) =239,968.22
431239,968.22 2,000 (239968.22 + 2000) x (1 + 5.34%/12) =243,045.48
432243,045.48 2,000 (243045.48 + 2000) x (1 + 5.34%/12) =246,136.44
433246,136.44 2,000 (246136.44 + 2000) x (1 + 5.34%/12) =249,241.16
434249,241.16 2,000 (249241.16 + 2000) x (1 + 5.34%/12) =252,359.70
435252,359.70 2,000 (252359.7 + 2000) x (1 + 5.34%/12) =255,492.13
436255,492.13 2,000 (255492.13 + 2000) x (1 + 5.34%/12) =258,638.50
437258,638.50 2,000 (258638.5 + 2000) x (1 + 5.34%/12) =261,798.88
438261,798.88 2,000 (261798.88 + 2000) x (1 + 5.34%/12) =264,973.33
439264,973.33 2,000 (264973.33 + 2000) x (1 + 5.34%/12) =268,161.91
4310268,161.91 2,000 (268161.91 + 2000) x (1 + 5.34%/12) =271,364.69
4311271,364.69 2,000 (271364.69 + 2000) x (1 + 5.34%/12) =274,581.73
4312274,581.73 2,000 (274581.73 + 2000) x (1 + 5.34%/12) =277,813.09
441277,813.09 2,000 (277813.09 + 2000) x (1 + 5.34%/12) =281,058.84
442281,058.84 2,000 (281058.84 + 2000) x (1 + 5.34%/12) =284,319.03
443284,319.03 2,000 (284319.03 + 2000) x (1 + 5.34%/12) =287,593.74
444287,593.74 2,000 (287593.74 + 2000) x (1 + 5.34%/12) =290,883.03
445290,883.03 2,000 (290883.03 + 2000) x (1 + 5.34%/12) =294,186.97
446294,186.97 2,000 (294186.97 + 2000) x (1 + 5.34%/12) =297,505.61
447297,505.61 2,000 (297505.61 + 2000) x (1 + 5.34%/12) =300,839.03
448300,839.03 2,000 (300839.03 + 2000) x (1 + 5.34%/12) =304,187.29
449304,187.29 2,000 (304187.29 + 2000) x (1 + 5.34%/12) =307,550.46
4410307,550.46 2,000 (307550.46 + 2000) x (1 + 5.34%/12) =310,928.59
4411310,928.59 2,000 (310928.59 + 2000) x (1 + 5.34%/12) =314,321.77
4412314,321.77 2,000 (314321.77 + 2000) x (1 + 5.34%/12) =317,730.06
451317,730.06 2,000 (317730.06 + 2000) x (1 + 5.34%/12) =321,153.52
452321,153.52 2,000 (321153.52 + 2000) x (1 + 5.34%/12) =324,592.22
453324,592.22 2,000 (324592.22 + 2000) x (1 + 5.34%/12) =328,046.23
454328,046.23 2,000 (328046.23 + 2000) x (1 + 5.34%/12) =331,515.62
455331,515.62 2,000 (331515.62 + 2000) x (1 + 5.34%/12) =335,000.45
456335,000.45 2,000 (335000.45 + 2000) x (1 + 5.34%/12) =338,500.80
457338,500.80 2,000 (338500.8 + 2000) x (1 + 5.34%/12) =342,016.73
458342,016.73 2,000 (342016.73 + 2000) x (1 + 5.34%/12) =345,548.31
459345,548.31 2,000 (345548.31 + 2000) x (1 + 5.34%/12) =349,095.62
4510349,095.62 2,000 (349095.62 + 2000) x (1 + 5.34%/12) =352,658.72
4511352,658.72 2,000 (352658.72 + 2000) x (1 + 5.34%/12) =356,237.69
4512356,237.69 2,000 (356237.69 + 2000) x (1 + 5.34%/12) =359,832.58
461359,832.58 2,000 (359832.58 + 2000) x (1 + 5.34%/12) =363,443.49
462363,443.49 2,000 (363443.49 + 2000) x (1 + 5.34%/12) =367,070.46
463367,070.46 2,000 (367070.46 + 2000) x (1 + 5.34%/12) =370,713.59
464370,713.59 2,000 (370713.59 + 2000) x (1 + 5.34%/12) =374,372.94
465374,372.94 2,000 (374372.94 + 2000) x (1 + 5.34%/12) =378,048.57
466378,048.57 2,000 (378048.57 + 2000) x (1 + 5.34%/12) =381,740.57
467381,740.57 2,000 (381740.57 + 2000) x (1 + 5.34%/12) =385,449.01
468385,449.01 2,000 (385449.01 + 2000) x (1 + 5.34%/12) =389,173.96
469389,173.96 2,000 (389173.96 + 2000) x (1 + 5.34%/12) =392,915.49
4610392,915.49 2,000 (392915.49 + 2000) x (1 + 5.34%/12) =396,673.68
4611396,673.68 2,000 (396673.68 + 2000) x (1 + 5.34%/12) =400,448.60
4612400,448.60 2,000 (400448.6 + 2000) x (1 + 5.34%/12) =404,240.33
471404,240.33 2,000 (404240.33 + 2000) x (1 + 5.34%/12) =408,048.94
472408,048.94 2,000 (408048.94 + 2000) x (1 + 5.34%/12) =411,874.50
473411,874.50 2,000 (411874.5 + 2000) x (1 + 5.34%/12) =415,717.10
474415,717.10 2,000 (415717.1 + 2000) x (1 + 5.34%/12) =419,576.81
475419,576.81 2,000 (419576.81 + 2000) x (1 + 5.34%/12) =423,453.69
476423,453.69 2,000 (423453.69 + 2000) x (1 + 5.34%/12) =427,347.84
477427,347.84 2,000 (427347.84 + 2000) x (1 + 5.34%/12) =431,259.33
478431,259.33 2,000 (431259.33 + 2000) x (1 + 5.34%/12) =435,188.22
479435,188.22 2,000 (435188.22 + 2000) x (1 + 5.34%/12) =439,134.61
4710439,134.61 2,000 (439134.61 + 2000) x (1 + 5.34%/12) =443,098.57
4711443,098.57 2,000 (443098.57 + 2000) x (1 + 5.34%/12) =447,080.18
4712447,080.18 2,000 (447080.18 + 2000) x (1 + 5.34%/12) =451,079.52
481451,079.52 2,000 (451079.52 + 2000) x (1 + 5.34%/12) =455,096.66
482455,096.66 2,000 (455096.66 + 2000) x (1 + 5.34%/12) =459,131.68
483459,131.68 2,000 (459131.68 + 2000) x (1 + 5.34%/12) =463,184.67
484463,184.67 2,000 (463184.67 + 2000) x (1 + 5.34%/12) =467,255.70
485467,255.70 2,000 (467255.7 + 2000) x (1 + 5.34%/12) =471,344.86
486471,344.86 2,000 (471344.86 + 2000) x (1 + 5.34%/12) =475,452.22
487475,452.22 2,000 (475452.22 + 2000) x (1 + 5.34%/12) =479,577.87
488479,577.87 2,000 (479577.87 + 2000) x (1 + 5.34%/12) =483,721.89
489483,721.89 2,000 (483721.89 + 2000) x (1 + 5.34%/12) =487,884.35
4810487,884.35 2,000 (487884.35 + 2000) x (1 + 5.34%/12) =492,065.35
4811492,065.35 2,000 (492065.35 + 2000) x (1 + 5.34%/12) =496,264.96
4812496,264.96 2,000 (496264.96 + 2000) x (1 + 5.34%/12) =500,483.27
491500,483.27 2,000 (500483.27 + 2000) x (1 + 5.34%/12) =504,720.36
492504,720.36 2,000 (504720.36 + 2000) x (1 + 5.34%/12) =508,976.31
493508,976.31 2,000 (508976.31 + 2000) x (1 + 5.34%/12) =513,251.21
494513,251.21 2,000 (513251.21 + 2000) x (1 + 5.34%/12) =517,545.14
495517,545.14 2,000 (517545.14 + 2000) x (1 + 5.34%/12) =521,858.19
496521,858.19 2,000 (521858.19 + 2000) x (1 + 5.34%/12) =526,190.44
497526,190.44 2,000 (526190.44 + 2000) x (1 + 5.34%/12) =530,541.98
498530,541.98 2,000 (530541.98 + 2000) x (1 + 5.34%/12) =534,912.89
499534,912.89 2,000 (534912.89 + 2000) x (1 + 5.34%/12) =539,303.26
4910539,303.26 2,000 (539303.26 + 2000) x (1 + 5.34%/12) =543,713.18
4911543,713.18 2,000 (543713.18 + 2000) x (1 + 5.34%/12) =548,142.73
4912548,142.73 2,000 (548142.73 + 2000) x (1 + 5.34%/12) =552,592.00
501552,592.00 2,000 (552592 + 2000) x (1 + 5.34%/12) =557,061.08
502557,061.08 2,000 (557061.08 + 2000) x (1 + 5.34%/12) =561,550.06
503561,550.06 2,000 (561550.06 + 2000) x (1 + 5.34%/12) =566,059.02
504566,059.02 2,000 (566059.02 + 2000) x (1 + 5.34%/12) =570,588.06
505570,588.06 2,000 (570588.06 + 2000) x (1 + 5.34%/12) =575,137.26
506575,137.26 2,000 (575137.26 + 2000) x (1 + 5.34%/12) =579,706.71
507579,706.71 2,000 (579706.71 + 2000) x (1 + 5.34%/12) =584,296.51
508584,296.51 2,000 (584296.51 + 2000) x (1 + 5.34%/12) =588,906.74
509588,906.74 2,000 (588906.74 + 2000) x (1 + 5.34%/12) =593,537.49
5010593,537.49 2,000 (593537.49 + 2000) x (1 + 5.34%/12) =598,188.87
5011598,188.87 2,000 (598188.87 + 2000) x (1 + 5.34%/12) =602,860.95
5012602,860.95 2,000 (602860.95 + 2000) x (1 + 5.34%/12) =607,553.83
511607,553.83 2,000 (607553.83 + 2000) x (1 + 5.34%/12) =612,267.60
512612,267.60 2,000 (612267.6 + 2000) x (1 + 5.34%/12) =617,002.36
513617,002.36 2,000 (617002.36 + 2000) x (1 + 5.34%/12) =621,758.20
514621,758.20 2,000 (621758.2 + 2000) x (1 + 5.34%/12) =626,535.21
515626,535.21 2,000 (626535.21 + 2000) x (1 + 5.34%/12) =631,333.49
516631,333.49 2,000 (631333.49 + 2000) x (1 + 5.34%/12) =636,153.13
517636,153.13 2,000 (636153.13 + 2000) x (1 + 5.34%/12) =640,994.23
518640,994.23 2,000 (640994.23 + 2000) x (1 + 5.34%/12) =645,856.88
519645,856.88 2,000 (645856.88 + 2000) x (1 + 5.34%/12) =650,741.19
5110650,741.19 2,000 (650741.19 + 2000) x (1 + 5.34%/12) =655,647.23
5111655,647.23 2,000 (655647.23 + 2000) x (1 + 5.34%/12) =660,575.12
5112660,575.12 2,000 (660575.12 + 2000) x (1 + 5.34%/12) =665,524.95
521665,524.95 2,000 (665524.95 + 2000) x (1 + 5.34%/12) =670,496.81
522670,496.81 2,000 (670496.81 + 2000) x (1 + 5.34%/12) =675,490.81
523675,490.81 2,000 (675490.81 + 2000) x (1 + 5.34%/12) =680,507.05
524680,507.05 2,000 (680507.05 + 2000) x (1 + 5.34%/12) =685,545.61
525685,545.61 2,000 (685545.61 + 2000) x (1 + 5.34%/12) =690,606.61
526690,606.61 2,000 (690606.61 + 2000) x (1 + 5.34%/12) =695,690.14
527695,690.14 2,000 (695690.14 + 2000) x (1 + 5.34%/12) =700,796.30
528700,796.30 2,000 (700796.3 + 2000) x (1 + 5.34%/12) =705,925.20
529705,925.20 2,000 (705925.2 + 2000) x (1 + 5.34%/12) =711,076.93
5210711,076.93 2,000 (711076.93 + 2000) x (1 + 5.34%/12) =716,251.59
5211716,251.59 2,000 (716251.59 + 2000) x (1 + 5.34%/12) =721,449.30
5212721,449.30 2,000 (721449.3 + 2000) x (1 + 5.34%/12) =726,670.14
531726,670.14 2,000 (726670.14 + 2000) x (1 + 5.34%/12) =731,914.23
532731,914.23 2,000 (731914.23 + 2000) x (1 + 5.34%/12) =737,181.66
533737,181.66 2,000 (737181.66 + 2000) x (1 + 5.34%/12) =742,472.55
534742,472.55 2,000 (742472.55 + 2000) x (1 + 5.34%/12) =747,786.99
535747,786.99 2,000 (747786.99 + 2000) x (1 + 5.34%/12) =753,125.09
536753,125.09 2,000 (753125.09 + 2000) x (1 + 5.34%/12) =758,486.95
537758,486.95 2,000 (758486.95 + 2000) x (1 + 5.34%/12) =763,872.69
538763,872.69 2,000 (763872.69 + 2000) x (1 + 5.34%/12) =769,282.41
539769,282.41 2,000 (769282.41 + 2000) x (1 + 5.34%/12) =774,716.21
5310774,716.21 2,000 (774716.21 + 2000) x (1 + 5.34%/12) =780,174.20
5311780,174.20 2,000 (780174.2 + 2000) x (1 + 5.34%/12) =785,656.49
5312785,656.49 2,000 (785656.49 + 2000) x (1 + 5.34%/12) =791,163.19
541791,163.19 2,000 (791163.19 + 2000) x (1 + 5.34%/12) =796,694.40
542796,694.40 2,000 (796694.4 + 2000) x (1 + 5.34%/12) =802,250.24
543802,250.24 2,000 (802250.24 + 2000) x (1 + 5.34%/12) =807,830.82
544807,830.82 2,000 (807830.82 + 2000) x (1 + 5.34%/12) =813,436.24
545813,436.24 2,000 (813436.24 + 2000) x (1 + 5.34%/12) =819,066.61
546819,066.61 2,000 (819066.61 + 2000) x (1 + 5.34%/12) =824,722.06
547824,722.06 2,000 (824722.06 + 2000) x (1 + 5.34%/12) =830,402.68
548830,402.68 2,000 (830402.68 + 2000) x (1 + 5.34%/12) =836,108.59
549836,108.59 2,000 (836108.59 + 2000) x (1 + 5.34%/12) =841,839.90
5410841,839.90 2,000 (841839.9 + 2000) x (1 + 5.34%/12) =847,596.73
5411847,596.73 2,000 (847596.73 + 2000) x (1 + 5.34%/12) =853,379.19
5412853,379.19 2,000 (853379.19 + 2000) x (1 + 5.34%/12) =859,187.40
551859,187.40 0(859187.4 + 0) x (1 + 5.34%/12) =863,012.56
552863,012.56 0(863012.56 + 0) x (1 + 5.34%/12) =866,854.74
553866,854.74 0(866854.74 + 0) x (1 + 5.34%/12) =870,714.04
554870,714.04 0(870714.04 + 0) x (1 + 5.34%/12) =874,590.51
555874,590.51 0(874590.51 + 0) x (1 + 5.34%/12) =878,484.25
556878,484.25 0(878484.25 + 0) x (1 + 5.34%/12) =882,395.32
557882,395.32 0(882395.32 + 0) x (1 + 5.34%/12) =886,323.80
558886,323.80 0(886323.8 + 0) x (1 + 5.34%/12) =890,269.77
559890,269.77 0(890269.77 + 0) x (1 + 5.34%/12) =894,233.31
5510894,233.31 0(894233.31 + 0) x (1 + 5.34%/12) =898,214.50
5511898,214.50 0(898214.5 + 0) x (1 + 5.34%/12) =902,213.41
5512902,213.41 0(902213.41 + 0) x (1 + 5.34%/12) =906,230.12
561906,230.12 0(906230.12 + 0) x (1 + 5.34%/12) =910,264.71
562910,264.71 0(910264.71 + 0) x (1 + 5.34%/12) =914,317.27
563914,317.27 0(914317.27 + 0) x (1 + 5.34%/12) =918,387.87
564918,387.87 0(918387.87 + 0) x (1 + 5.34%/12) =922,476.60
565922,476.60 0(922476.6 + 0) x (1 + 5.34%/12) =926,583.52
566926,583.52 0(926583.52 + 0) x (1 + 5.34%/12) =930,708.73
567930,708.73 0(930708.73 + 0) x (1 + 5.34%/12) =934,852.31
568934,852.31 0(934852.31 + 0) x (1 + 5.34%/12) =939,014.33
569939,014.33 0(939014.33 + 0) x (1 + 5.34%/12) =943,194.89
5610943,194.89 0(943194.89 + 0) x (1 + 5.34%/12) =947,394.05
5611947,394.05 0(947394.05 + 0) x (1 + 5.34%/12) =951,611.91
5612951,611.91 0(951611.91 + 0) x (1 + 5.34%/12) =955,848.55
571955,848.55 0(955848.55 + 0) x (1 + 5.34%/12) =960,104.05
572960,104.05 0(960104.05 + 0) x (1 + 5.34%/12) =964,378.50
573964,378.50 0(964378.5 + 0) x (1 + 5.34%/12) =968,671.97
574968,671.97 0(968671.97 + 0) x (1 + 5.34%/12) =972,984.57
575972,984.57 0(972984.57 + 0) x (1 + 5.34%/12) =977,316.36
576977,316.36 0(977316.36 + 0) x (1 + 5.34%/12) =981,667.43
577981,667.43 0(981667.43 + 0) x (1 + 5.34%/12) =986,037.88
578986,037.88 0(986037.88 + 0) x (1 + 5.34%/12) =990,427.79
579990,427.79 0(990427.79 + 0) x (1 + 5.34%/12) =994,837.24
5710994,837.24 0(994837.24 + 0) x (1 + 5.34%/12) =999,266.32
5711999,266.32 0(999266.32 + 0) x (1 + 5.34%/12) =1,003,715.11
57121,003,715.11 0(1003715.11 + 0) x (1 + 5.34%/12) =1,008,183.72
5811,008,183.72 0(1008183.72 + 0) x (1 + 5.34%/12) =1,012,672.22
5821,012,672.22 0(1012672.22 + 0) x (1 + 5.34%/12) =1,017,180.70
5831,017,180.70 0(1017180.7 + 0) x (1 + 5.34%/12) =1,021,709.26
5841,021,709.26 0(1021709.26 + 0) x (1 + 5.34%/12) =1,026,257.98
5851,026,257.98 0(1026257.98 + 0) x (1 + 5.34%/12) =1,030,826.94
5861,030,826.94 0(1030826.94 + 0) x (1 + 5.34%/12) =1,035,416.25
5871,035,416.25 0(1035416.25 + 0) x (1 + 5.34%/12) =1,040,025.99
5881,040,025.99 0(1040025.99 + 0) x (1 + 5.34%/12) =1,044,656.26
5891,044,656.26 0(1044656.26 + 0) x (1 + 5.34%/12) =1,049,307.14
58101,049,307.14 0(1049307.14 + 0) x (1 + 5.34%/12) =1,053,978.72
58111,053,978.72 0(1053978.72 + 0) x (1 + 5.34%/12) =1,058,671.10
58121,058,671.10 0(1058671.1 + 0) x (1 + 5.34%/12) =1,063,384.37
5911,063,384.37 0(1063384.37 + 0) x (1 + 5.34%/12) =1,068,118.63
5921,068,118.63 0(1068118.63 + 0) x (1 + 5.34%/12) =1,072,873.97
5931,072,873.97 0(1072873.97 + 0) x (1 + 5.34%/12) =1,077,650.47
5941,077,650.47 0(1077650.47 + 0) x (1 + 5.34%/12) =1,082,448.24
5951,082,448.24 0(1082448.24 + 0) x (1 + 5.34%/12) =1,087,267.37
5961,087,267.37 0(1087267.37 + 0) x (1 + 5.34%/12) =1,092,107.96
5971,092,107.96 0(1092107.96 + 0) x (1 + 5.34%/12) =1,096,970.09
5981,096,970.09 0(1096970.09 + 0) x (1 + 5.34%/12) =1,101,853.88
5991,101,853.88 0(1101853.88 + 0) x (1 + 5.34%/12) =1,106,759.40
59101,106,759.40 0(1106759.4 + 0) x (1 + 5.34%/12) =1,111,686.77
59111,111,686.77 0(1111686.77 + 0) x (1 + 5.34%/12) =1,116,636.07
59121,116,636.07 0(1116636.07 + 0) x (1 + 5.34%/12) =1,121,607.41
6011,121,607.41 0(1121607.41 + 0) x (1 + 5.34%/12) =1,126,600.88
6021,126,600.88 0(1126600.88 + 0) x (1 + 5.34%/12) =1,131,616.58
6031,131,616.58 0(1131616.58 + 0) x (1 + 5.34%/12) =1,136,654.61
6041,136,654.61 0(1136654.61 + 0) x (1 + 5.34%/12) =1,141,715.07
6051,141,715.07 0(1141715.07 + 0) x (1 + 5.34%/12) =1,146,798.06
6061,146,798.06 0(1146798.06 + 0) x (1 + 5.34%/12) =1,151,903.68
6071,151,903.68 0(1151903.68 + 0) x (1 + 5.34%/12) =1,157,032.03
6081,157,032.03 0(1157032.03 + 0) x (1 + 5.34%/12) =1,162,183.21
6091,162,183.21 0(1162183.21 + 0) x (1 + 5.34%/12) =1,167,357.33
60101,167,357.33 0(1167357.33 + 0) x (1 + 5.34%/12) =1,172,554.48
60111,172,554.48 0(1172554.48 + 0) x (1 + 5.34%/12) =1,177,774.77
60121,177,774.77 0(1177774.77 + 0) x (1 + 5.34%/12) =1,183,018.30
6111,183,018.30 0(1183018.3 + 0) x (1 + 5.34%/12) =1,188,285.18
6121,188,285.18 0(1188285.18 + 0) x (1 + 5.34%/12) =1,193,575.50
6131,193,575.50 0(1193575.5 + 0) x (1 + 5.34%/12) =1,198,889.38
6141,198,889.38 0(1198889.38 + 0) x (1 + 5.34%/12) =1,204,226.91
6151,204,226.91 0(1204226.91 + 0) x (1 + 5.34%/12) =1,209,588.21
6161,209,588.21 0(1209588.21 + 0) x (1 + 5.34%/12) =1,214,973.37
6171,214,973.37 0(1214973.37 + 0) x (1 + 5.34%/12) =1,220,382.51
6181,220,382.51 0(1220382.51 + 0) x (1 + 5.34%/12) =1,225,815.74
6191,225,815.74 0(1225815.74 + 0) x (1 + 5.34%/12) =1,231,273.15
61101,231,273.15 0(1231273.15 + 0) x (1 + 5.34%/12) =1,236,754.86
61111,236,754.86 0(1236754.86 + 0) x (1 + 5.34%/12) =1,242,260.97
61121,242,260.97 0(1242260.97 + 0) x (1 + 5.34%/12) =1,247,791.60
6211,247,791.60 0(1247791.6 + 0) x (1 + 5.34%/12) =1,253,346.85
6221,253,346.85 0(1253346.85 + 0) x (1 + 5.34%/12) =1,258,926.83
6231,258,926.83 0(1258926.83 + 0) x (1 + 5.34%/12) =1,264,531.66
6241,264,531.66 0(1264531.66 + 0) x (1 + 5.34%/12) =1,270,161.43
6251,270,161.43 0(1270161.43 + 0) x (1 + 5.34%/12) =1,275,816.27
6261,275,816.27 0(1275816.27 + 0) x (1 + 5.34%/12) =1,281,496.29
6271,281,496.29 0(1281496.29 + 0) x (1 + 5.34%/12) =1,287,201.60
6281,287,201.60 0(1287201.6 + 0) x (1 + 5.34%/12) =1,292,932.30
6291,292,932.30 0(1292932.3 + 0) x (1 + 5.34%/12) =1,298,688.52
62101,298,688.52 0(1298688.52 + 0) x (1 + 5.34%/12) =1,304,470.37
62111,304,470.37 0(1304470.37 + 0) x (1 + 5.34%/12) =1,310,277.96
62121,310,277.96 0(1310277.96 + 0) x (1 + 5.34%/12) =1,316,111.40
6311,316,111.40 0(1316111.4 + 0) x (1 + 5.34%/12) =1,321,970.81
6321,321,970.81 0(1321970.81 + 0) x (1 + 5.34%/12) =1,327,856.32
6331,327,856.32 0(1327856.32 + 0) x (1 + 5.34%/12) =1,333,768.02
6341,333,768.02 0(1333768.02 + 0) x (1 + 5.34%/12) =1,339,706.04
6351,339,706.04 0(1339706.04 + 0) x (1 + 5.34%/12) =1,345,670.50
6361,345,670.50 0(1345670.5 + 0) x (1 + 5.34%/12) =1,351,661.51
6371,351,661.51 0(1351661.51 + 0) x (1 + 5.34%/12) =1,357,679.20
6381,357,679.20 0(1357679.2 + 0) x (1 + 5.34%/12) =1,363,723.68
6391,363,723.68 0(1363723.68 + 0) x (1 + 5.34%/12) =1,369,795.06
63101,369,795.06 0(1369795.06 + 0) x (1 + 5.34%/12) =1,375,893.48
63111,375,893.48 0(1375893.48 + 0) x (1 + 5.34%/12) =1,382,019.05
63121,382,019.05 0(1382019.05 + 0) x (1 + 5.34%/12) =1,388,171.89
6411,388,171.89 0(1388171.89 + 0) x (1 + 5.34%/12) =1,394,352.12
6421,394,352.12 0(1394352.12 + 0) x (1 + 5.34%/12) =1,400,559.87
6431,400,559.87 0(1400559.87 + 0) x (1 + 5.34%/12) =1,406,795.25
6441,406,795.25 0(1406795.25 + 0) x (1 + 5.34%/12) =1,413,058.40
6451,413,058.40 0(1413058.4 + 0) x (1 + 5.34%/12) =1,419,349.43
6461,419,349.43 0(1419349.43 + 0) x (1 + 5.34%/12) =1,425,668.46
6471,425,668.46 0(1425668.46 + 0) x (1 + 5.34%/12) =1,432,015.63
6481,432,015.63 0(1432015.63 + 0) x (1 + 5.34%/12) =1,438,391.06
6491,438,391.06 0(1438391.06 + 0) x (1 + 5.34%/12) =1,444,794.87
64101,444,794.87 0(1444794.87 + 0) x (1 + 5.34%/12) =1,451,227.19
64111,451,227.19 0(1451227.19 + 0) x (1 + 5.34%/12) =1,457,688.15
64121,457,688.15 0(1457688.15 + 0) x (1 + 5.34%/12) =1,464,177.87
6511,464,177.87 0(1464177.87 + 0) x (1 + 5.34%/12) =1,470,696.49
6521,470,696.49 0(1470696.49 + 0) x (1 + 5.34%/12) =1,477,244.13
6531,477,244.13 0(1477244.13 + 0) x (1 + 5.34%/12) =1,483,820.91
6541,483,820.91 0(1483820.91 + 0) x (1 + 5.34%/12) =1,490,426.98
6551,490,426.98 0(1490426.98 + 0) x (1 + 5.34%/12) =1,497,062.46
6561,497,062.46 0(1497062.46 + 0) x (1 + 5.34%/12) =1,503,727.48
6571,503,727.48 0(1503727.48 + 0) x (1 + 5.34%/12) =1,510,422.17
6581,510,422.17 0(1510422.17 + 0) x (1 + 5.34%/12) =1,517,146.67
6591,517,146.67 0(1517146.67 + 0) x (1 + 5.34%/12) =1,523,901.11
65101,523,901.11 0(1523901.11 + 0) x (1 + 5.34%/12) =1,530,685.62
65111,530,685.62 0(1530685.62 + 0) x (1 + 5.34%/12) =1,537,500.33
65121,537,500.33 0(1537500.33 + 0) x (1 + 5.34%/12) =1,544,345.38
6611,544,345.38 0(1544345.38 + 0) x (1 + 5.34%/12) =1,551,220.91
6621,551,220.91 0(1551220.91 + 0) x (1 + 5.34%/12) =1,558,127.05
6631,558,127.05 0(1558127.05 + 0) x (1 + 5.34%/12) =1,565,063.93
6641,565,063.93 0(1565063.93 + 0) x (1 + 5.34%/12) =1,572,031.70
6651,572,031.70 0(1572031.7 + 0) x (1 + 5.34%/12) =1,579,030.48
6661,579,030.48 0(1579030.48 + 0) x (1 + 5.34%/12) =1,586,060.43
6671,586,060.43 0(1586060.43 + 0) x (1 + 5.34%/12) =1,593,121.68
6681,593,121.68 0(1593121.68 + 0) x (1 + 5.34%/12) =1,600,214.36
6691,600,214.36 0(1600214.36 + 0) x (1 + 5.34%/12) =1,607,338.62
66101,607,338.62 0(1607338.62 + 0) x (1 + 5.34%/12) =1,614,494.60
66111,614,494.60 0(1614494.6 + 0) x (1 + 5.34%/12) =1,621,682.43
66121,621,682.43 0(1621682.43 + 0) x (1 + 5.34%/12) =1,628,902.27
6711,628,902.27 0(1628902.27 + 0) x (1 + 5.34%/12) =1,636,154.25
6721,636,154.25 0(1636154.25 + 0) x (1 + 5.34%/12) =1,643,438.51
6731,643,438.51 0(1643438.51 + 0) x (1 + 5.34%/12) =1,650,755.21
6741,650,755.21 0(1650755.21 + 0) x (1 + 5.34%/12) =1,658,104.48
6751,658,104.48 0(1658104.48 + 0) x (1 + 5.34%/12) =1,665,486.47
6761,665,486.47 0(1665486.47 + 0) x (1 + 5.34%/12) =1,672,901.32
6771,672,901.32 0(1672901.32 + 0) x (1 + 5.34%/12) =1,680,349.19
6781,680,349.19 0(1680349.19 + 0) x (1 + 5.34%/12) =1,687,830.22
6791,687,830.22 0(1687830.22 + 0) x (1 + 5.34%/12) =1,695,344.55
67101,695,344.55 0(1695344.55 + 0) x (1 + 5.34%/12) =1,702,892.33
67111,702,892.33 0(1702892.33 + 0) x (1 + 5.34%/12) =1,710,473.72
67121,710,473.72 0(1710473.72 + 0) x (1 + 5.34%/12) =1,718,088.86
6811,718,088.86 0(1718088.86 + 0) x (1 + 5.34%/12) =1,725,737.90
6821,725,737.90 0(1725737.9 + 0) x (1 + 5.34%/12) =1,733,421.00
6831,733,421.00 0(1733421 + 0) x (1 + 5.34%/12) =1,741,138.31
6841,741,138.31 0(1741138.31 + 0) x (1 + 5.34%/12) =1,748,889.97
6851,748,889.97 0(1748889.97 + 0) x (1 + 5.34%/12) =1,756,676.14
6861,756,676.14 0(1756676.14 + 0) x (1 + 5.34%/12) =1,764,496.98
6871,764,496.98 0(1764496.98 + 0) x (1 + 5.34%/12) =1,772,352.63
6881,772,352.63 0(1772352.63 + 0) x (1 + 5.34%/12) =1,780,243.26
6891,780,243.26 0(1780243.26 + 0) x (1 + 5.34%/12) =1,788,169.02
68101,788,169.02 0(1788169.02 + 0) x (1 + 5.34%/12) =1,796,130.07
68111,796,130.07 0(1796130.07 + 0) x (1 + 5.34%/12) =1,804,126.56
68121,804,126.56 0(1804126.56 + 0) x (1 + 5.34%/12) =1,812,158.65
6911,812,158.65 0(1812158.65 + 0) x (1 + 5.34%/12) =1,820,226.50
6921,820,226.50 0(1820226.5 + 0) x (1 + 5.34%/12) =1,828,330.27
6931,828,330.27 0(1828330.27 + 0) x (1 + 5.34%/12) =1,836,470.11
6941,836,470.11 0(1836470.11 + 0) x (1 + 5.34%/12) =1,844,646.20
6951,844,646.20 0(1844646.2 + 0) x (1 + 5.34%/12) =1,852,858.68
6961,852,858.68 0(1852858.68 + 0) x (1 + 5.34%/12) =1,861,107.73
6971,861,107.73 0(1861107.73 + 0) x (1 + 5.34%/12) =1,869,393.50
6981,869,393.50 0(1869393.5 + 0) x (1 + 5.34%/12) =1,877,716.17
6991,877,716.17 0(1877716.17 + 0) x (1 + 5.34%/12) =1,886,075.88
69101,886,075.88 0(1886075.88 + 0) x (1 + 5.34%/12) =1,894,472.82
69111,894,472.82 0(1894472.82 + 0) x (1 + 5.34%/12) =1,902,907.13
69121,902,907.13 0(1902907.13 + 0) x (1 + 5.34%/12) =1,911,379.00
7011,911,379.00 ---
Therefore, the following is the table of summary which shows the expense ratio.
ScenariosAssumed return
(before cost) per annum
Realised return
(after cost) per annum
Expense ratio per annum
Scenario 18%5.20%2.80%
Scenario 28%5.34%2.66%
As it can be seen that PruSelect Vantage's expense ratio of 2.66% to 2.80% is extremely high. It is interesting to note that the extremely high expense ratio has already took into account of PruSelect Vantage's first year bonus and the 5 yearly loyalty bonuses. This is a common marketing gimmick. Most consumers just look narrowly at specific benefits such as bonuses or discounts but fail to look at the overall picture.

Liquidity

The example showed a PruSelect Vantage 20 years premium term. This means, you must not terminate the product nor stop your premium during this 20 years period otherwise you will incur high charges. Hence, the product has very poor liquidity. In this modern age, do not commit to any long-term plan because you cannot be assured of your job and health. My conclusion is that PruSelect Vantage is not a good product based on expense ratio and liquidity. Many insurance agents will tell their clients that such a product is good because there is a high assurance that the projected 8% (before cost) will be achieved through Mercer. Apparently, Mercer is able to provide asset allocation decision making if the client opts for it. Under Singapore’s regulation, it is prohibited for any financial advisers to provide the clients with any form of promises and projections such as “assurances of high return”. This is because in reality it is impossible to predict future returns. It is strange that you were not given the benefit illustration but instead with a product brochure. Under Singapore’s law, all potential clients must receive the benefit illustration. (Background: as a fee-based financial planner, it is my duty to advice clients when they ask for financial advice such as this. I am able to provide independent and objective advice because of being paid by clients.)

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Comments

  1. peter says

    7, August 2014 at 3:40 pm

    8% growth rate is totally unrealistic in a 2% inflation world. More realistic would be 3-4% which means Pru would take around 75% of all gains. Horrible product – shame on pro but I don’t think they have any shame.

    Reply
  2. mah weng kong says

    24, May 2023 at 10:25 pm

    I bought a PruSelect Vantage policy 9 year ago , paying a premium of Sgd $ 750/month. This is a 10 year policy. Every month, I check the fund value , is always below the premium paid even in the 9th year. I doubt that I will get back my investment after paying the full term policy premium after the 10th year. If I will to put in a FD and get compound , I will definitely get more in return without all the stress. This is the real situation I am sharing with other reader out there. How can Prudential allow to sell such a product where the policy holder lose while ploicy holder lose.

    Thank you,

    mah weng kong

    Reply

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