loan,lease,amortization.. (1)

8/3/2019 Loan,Lease,Amortization.. (1)

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Presented by:Presented by: Zain ShaukatZain Shaukat

Zakia ArshadZakia ArshadFarah KhanFarah Khan

M. MudassarM. Mudassar

M. BilalM. Bilal

Class:Class: MBA 3MBA 3rdrd

Batch:Batch: 1515

Presented To:Presented To: Sir SanaSir Sana--ulul--lahlah


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LoanLoan

LeaseLease

AmortizationAmortization


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Todays AgendaTodays Agenda

Introduction of AmortizationIntroduction of Amortization

AmortizationAmortization

Amortization ScheduleAmortization Schedule

Methods of AmortizationMethods of Amortization

Introduction ofLoansIntroduction ofLoans

LoansLoans

Characteristics ofLoansCharacteristics ofLoans

Common types ofLoansCommon types ofLoans


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Amortization of loansAmortization of loans

ExampleExampleEffectsEffects

Introduction ofLeasingIntroduction ofLeasing

LeasingLeasing

Characteristics ofLeasingCharacteristics ofLeasing

Advantages & disadvantages ofLeasingAdvantages & disadvantages ofLeasing

Types ofLeasingTypes ofLeasing

Amortization ofLeaseAmortization ofLease

RealReal--Time Example of Amortization ofLoansTime Example of Amortization ofLoans

ConclusionConclusion


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INTRODUCTION OFINTRODUCTION OF

AMORTIZATIONAMORTIZATIONInIn accountingaccounting PreferredPreferred termtermforfor thethe apportionmentapportionment ofof

thethe costcost ofof anan assetsassets overoverthethe assetsassets estimatedestimated usefuluseful lifelife..Conceptually,Conceptually, amortizationamortization isissimilarsimilar toto depreciationdepreciation..

Amortization Amortization alsoalso appliesapplies totoassetasset balances,balances, suchsuch asas discountdiscountonon notesnotes receivable,receivable, deferreddeferredcharges,charges, andand somesome intangibleintangible

assetsassets..


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AMORTIZATIONAMORTIZATION

AmortizationAmortization isis aa methodmethodforfor repayingrepaying aa loanloan ininequalequal installmentsinstallments..

OROR

TheThe gradualgradual repaymentrepayment ofofborrowingsborrowings inin aa seriesseries ofofinstallmentsinstallments


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AMORTIZATION (Cont..)AMORTIZATION (Cont..)

TheThe repaymentrepayment ofof aa loanloan calculatedcalculated soso thatthatthethe principal principal will will bebe paid paid inin fullfull throughthrough

monthlymonthly paymentspayments ofof principalprincipal andand interestinterest

forfor aa predeterminedpredetermined periodperiod ofof timetime.. ManyMany

homehome mortgagesmortgages areare fullyfully amortizedamortized inin 1515,, 2020

oror 3030 yearsyears..


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EXAMPL

EEXAMPL

EThe The 1515 andand 3030 year year fixedfixed--raterate mortgagesmortgagescommoncommon inin thethe USUS areare fullyfully amortizedamortized loansloans..

ToTo paypay offoff aa $$100100,,000000,, 1515 year,year, 77%%,, fixedfixed--rateratemortgage,mortgage, aa personperson mustmust paypay $$898898..8383 eacheachmonthmonth forfor 180180 monthsmonths.. $$583583..3333 ofof thethe firstfirst

paymentpayment goesgoes towardtoward interestinterest andand $$315315..5050 isisusedused toto reducereduce principalprincipal..


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AMORTIZATION SCHEDULEAMORTIZATION SCHEDULE

An An amortizationamortization

scheduleschedule isis aa tabletable

detailingdetailing eacheach periodicperiodicpayment payment onon

anan amortizingamortizing loan,loan, asas

generatedgenerated byby

anan amortizationamortization

calculatorcalculator..


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EXAMPLEEXAMPLE

HereHere areare thethe firstfirst fewfew lineslines ofof ananamortizationamortization scheduleschedule forfor aa 1515--year, year, 1010%%

fixedfixed raterate loanloan withwith anan initialinitial principalprincipal ofof

$$187187,,000000..


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METHODS OF AMORTIZATIONMETHODS OF AMORTIZATION

There There areare differentdifferent methodsmethods ofofamortizationamortization throughthrough which which we we cancan

understandunderstand amortizationamortization scheduleschedule.. ItItincludesincludes::

StraightStraight lineline (linear)(linear)

DecliningDeclining balancebalance


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BulletBullet (all(all atat once)once)

IncreasingIncreasing balancebalance(negative(negativeamortization)amortization)


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INTRODUCTION OF LOANSINTRODUCTION OF LOANS

TheThe actact ofof givinggiving money,money, propertyproperty

oror otherother materialmaterial goodsgoods toto anotheranother

party party inin exchangeexchange forfor futurefuture

repaymentrepayment ofof thethe principalprincipal amountamountalongalong withwith interestinterest oror otherother financefinance

chargescharges.. A A loanloan maymay bebe forfor aa

specific,specific, oneone--timetime amountamount oror cancan bebeavailableavailable asas openopen--endedended creditcredit upup

toto aa specifiedspecified ceilingceiling amountamount..


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LOANSLOANS

AA loanloan isis thethe purchasepurchase ofofthethe presentpresent useuse ofof moneymoney

withwith thethe promisepromise toto repayrepaythethe amountamount inin thethe futurefutureaccordingaccording toto aa prepre--arrangedarranged scheduleschedule andand atataa specifiedspecified raterate ofof interestinterest..


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CHARACTERISTICS OF LOANSCHARACTERISTICS OF LOANS

LoansLoans havehave thethe followingfollowingdistinguishingdistinguishing characteristicscharacteristics::

TimeTime toto maturitymaturity

RepaymentRepayment ScheduleSchedule

InterestInterest

SecuritySecurity


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COMMON TYPES OF LOANSCOMMON TYPES OF LOANS

FollowingFollowing areare examplesexamples ofof somesomecommoncommon typestypes ofof loansloans::

ShortShort--TermTerm LoansLoans

IntermediateIntermediate--TermTerm LoanLoan

LongLong--termterm loansloans


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AMORTIZATION OF LOANSAMORTIZATION OF LOANS

InIn bankingbanking andand finance,finance, anan amortizingamortizing loanloan isis aa loanloan

wherewhere thethe principalprincipal ofof thethe loanloan isis paidpaid downdown overover thethelifelife ofof thethe loan,loan, accordingaccording toto somesome amortizationamortization

schedule,schedule, typicallytypically throughthrough equalequal paymentspayments..

Similarly,Similarly, anan amortizingamortizing bondbond isis aa bondbond thatthat repaysrepays

part part ofof thethe principal principal (face(face value) value) alongalong withwiththethe couponcoupon paymentspayments..


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EXAMPL

EEXAMPL

E

ConstructConstruct anan amortizationamortization scheduleschedule forfor aa$$11,,000000,, 1010%% annualannual raterate loanloan with with 33 equalequal

paymentspayments..

StepStep 11 FindFind TheThe RequiredRequired AnnualAnnual PaymentPayment::

All All inputinput informationinformation isis alreadyalreadygiven,given, justjust rememberremember thatthat thethe FVFV == 00becausebecause thethe reasonreason forfor amortizingamortizing thethe loanloanandand makingmaking paymentspayments isis toto retireretire thethe loanloan..


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StepStep 22 FindFind thethe interestinterest paidpaid inin YearYear 11::TheThe borrowerborrower willwill oweowe interestinterest uponupon

thethe initialinitial balancebalance atat thethe endend ofof thethe firstfirst yearyear..

InterestInterest toto bebe paidpaid inin thethe firstfirst yearyear cancan bebefoundfound byby multiplyingmultiplying thethe beginningbeginning balancebalance

byby thethe interestinterest raterate..

INT1 = balance (I)INT1 = balance (I)

INT1 = $1,000 (0.10) = $100INT1 = $1,000 (0.10) = $100


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StepStep 33 FindFind thethe principalprincipal repaidrepaid inin YearYear 11::IfIf aa paymentpayment ofof $$402402..1111 waswas mademade atat

thethe endend ofof thethe firstfirst yearyear andand $$100100 waswas paidpaid

towardtoward interest,interest, thethe remainingremaining value value mustmustrepresentrepresent thethe amountamount ofof principalprincipal repaidrepaid..

PRINPRIN = PMT= PMT INTINT= $402.11= $402.11 -- $100$100

= $302.11= $302.11


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EFFECTSEFFECTS

Amortization of debt has two majorAmortization of debt has two majoreffects:effects:

11.. CreditCredit riskrisk::

FirstFirst andand mostmost importantly,importantly, itit

substantiallysubstantially reducesreduces thethe creditcredit riskrisk ofofthethe loanloan oror bondbond..

22.. InterestInterest raterate riskrisk::

A A secondarysecondary effecteffect isis thatthatamortizationamortization reducesreduces thethe durationduration ofof

thethe debt,debt, reducingreducing thethe debt'sdebt'ssensitivitysensitivity toto interestinterest raterate risk,risk, asascomparedcompared toto debtdebt with with thethesamesame maturitymaturity andand couponcoupon raterate..


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LEASINGLEASING

AA leaselease isis aa contractcontract wherebywhereby

thethe ownerowner ofof anan assetasset grantsgrantstoto anotheranother partyparty thethe exclusiveexclusive

rightsrights toto useuse thethe assetasset usuallyusually

forfor anan agreedagreed periodperiod ofof timetime

inin returnreturn forfor thethe paymentpayment ofof aa

specificspecific amountamount..


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CHARACTERISTICS OFCHARACTERISTICS OF

LEASINGLEASING

The characteristics of leasing are given below:The characteristics of leasing are given below:

The The rightright toto useuse thethe laser'slaser's assetasset isis grantedgranted ininexchangeexchange forfor aa feefee calledcalled thethe leaselease paymentpayment..

The The leaselease payments payments areare usuallyusually paid paid inin

installmentsinstallments.. LeasesLeases maymay bebe longlong-- oror shortshort--termterm..


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ADVANTAGES OFADVANTAGES OF

L

EASINGL

EASINGForFor businesses,businesses, leasingleasing propertyproperty maymay havehave significantsignificantfinancialfinancial benefitsbenefits::

LeasingLeasing isis lessless capitalcapital--intensiveintensive thanthan purchasing,purchasing, soso ifif

aa businessbusiness hashas constraintsconstraints onon itsits capital,capital, itit cancan growgrowmoremore rapidlyrapidly byby leasingleasing property property thanthan itit couldcould byby

purchasingpurchasing thethe propertyproperty outrightoutright..

CapitalCapital assetsassets maymay fluctuatefluctuate inin valuevalue.. LeasingLeasing shiftsshifts

risksrisks toto thethe lesser,lesser, butbut ifif thethe propertyproperty marketmarket hashasshownshown steadysteady growthgrowth overover time,time, aa businessbusiness thatthat

dependsdepends onon leasedleased propertyproperty willwill enjoyenjoy capitalcapital gainsgains..


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DISADVANTAGES OFDISADVANTAGES OF

LEASINGLEASING

LeasingLeasing propertyproperty maymay havehave significantsignificant drawbacksdrawbacks::

A A netnet leaselease maymay shiftshift somesome oror allall ofof thethemaintenancemaintenance costscosts ontoonto thethe lesseelessee..

IfIf thethe businessbusiness isis successful,successful, lesserlesser maymay demanddemand

higherhigher rentalrental paymentspayments whenwhen leasesleases comecome upup forforrenewalrenewal.. IfIf thethe valuevalue ofof thethe businessbusiness isis tiedtied toto thetheuseuse ofof thatthat particular particular property, property, thethe lesserlesser hashas aasignificantsignificant advantageadvantage overover thethe lesseelessee ininnegotiationsnegotiations..


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TYPES OF LEASINGTYPES OF LEASING

FollowingFollowing areare thethe typestypes ofofLeasingLeasing::

11.. FinanceFinance leasingleasing::

AA longlong--termterm leaselease overover thethe expectedexpectedlifelife ofof thethe equipment,equipment, usuallyusually threethree yearsyears

oror more,more, afterafter whichwhich youyou paypay aa nominalnominalrentrent oror cancan sellsell oror scrapscrap thethe equipmentequipment..

22.. OperatingOperating leasingleasing::

AnAn operatingoperating leaselease isis aa leaselease whosewhose

termterm isis shortshort comparedcompared toto thethe usefuluseful lifelifeofof thethe assetasset oror piecepiece ofof equipmentequipment (an(anairliner,airliner, aa ship,ship, etcetc..)) beingbeing leasedleased.. AnAnoperatingoperating leaselease isis commonlycommonly usedused totoacquireacquire equipmentequipment onon aa relativelyrelatively shortshort--

termterm basisbasis..


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AMORTIZATION OFAMORTIZATION OF

LEASELEASEInIn amortizationamortization ofof leaselease thethe

gradualgradual reductionreduction ofof aa termterm debtdebt

byby periodicperiodic paymentspayments areare enoughenoughtoto pay pay thethe interestinterest andand toto

eliminateeliminate thethe principal principal atat

maturitymaturity.. TheThe amountamount ofof periodicperiodic

ratesrates dependsdepends onon thethe principal,principal,thethe interestinterest raterate andand thethe lengthlength ofof

timetime ofof thethe loanloan..


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REALREAL--TIME EXAMPLE OFTIME EXAMPLE OF

JK GROUPJK GROUPOF COMPANIESOF COMPANIES

ORIX LEASING PAKISTAN LTD. C#2005/MP/32596ORIX LEASING PAKISTAN LTD. C#2005/MP/32596

TWO DRAWING FRAMESTWO DRAWING FRAMES 05 05--230230--0202 09 09--410410--002002

PRINCIPALPRINCIPAL 4,700,000 4,700,000 3204002632040026

M/UP Or IRR %M/UP Or IRR % 14.0250 14.0250 w. e. f 01w. e. f 01--0909--0606 00

K+400 PointsK+400 Points

INSTALMENTINSTALMENT 134,380 134,380 Monthly in arrearMonthly in arrear 3737--100100--00020002 84050062 84050062

PERIODPERIOD 36 36 MonthsMonths 47 47--100100--00020002 84050002 84050002

Due DateDue Date 30th of every month 30th of every month


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INSTALMEINSTALME--

NTNT PRINCIPAL PRINCIPAL INTREST INTREST IRR %IRR % BALANCE BALANCE

4,700,0004,700,000

L.K MoneyL.K Money 705,000 705,000 705,000705,000 00 3,995,0003,995,000

11 134,380134,380 91,49491,494 42,88642,886 12.881812.8818 3,903,5063,903,506 3030--SepSep--0505

22 134,380134,380 92,47792,477 41,90341,903 12.881812.8818 3,811,0293,811,029 3030--OctOct--0505

33 134,380134,380 93,46993,469 40,91140,911 12.881812.8818 3,717,5603,717,560 3030--NovNov--0505

44 134,380134,380 94,47394,473 39,90739,907 12.881812.8818 3,623,0873,623,087 3030--DecDec--0505

55 134,380134,380 95,48795,487 38,89338,893 12.881812.8818 3,527,6013,527,601 3030--JanJan--0606

66 134,380134,380 96,51296,512 37,86837,868 12.881812.8818 3,431,0893,431,089 2828--FebFeb--0606

77 135,080135,080 95,10995,109 39,97139,971 13.979713.9797 3,335,9803,335,980 3030--MarMar--0606

88 135,080135,080 96,21796,217 38,86338,863 13.979713.9797 3,239,7633,239,763 3030--AprApr--0606

99 135,080135,080 97,33897,338 37,74237,742 13.979713.9797 3,142,4263,142,426 3030--MayMay--0606

1010 135,080135,080 98,47298,472 36,60836,608 13.979713.9797 3,043,9543,043,954 3030--JunJun--0606

1111 135,080135,080 99,61999,619 35,46135,461 13.979713.9797 2,944,3352,944,335 3030--JulJul--0606

1212 135,080135,080 100,779100,779 34,30134,301 13.979713.9797 2,843,5562,843,556 3030--AugAug--0606

1313 136,500136,500 103,266103,266 33,23433,234 14.025014.0250 2,740,2902,740,290 3030--SepSep--0606

raterate

revisrevis

eded 00

1414 136,500136,500 104,473104,473 32,02732,027 14.025014.0250 2,635,8172,635,817 3030--OctOct--0606

1515 136,500136,500 105,694105,694 30,80630,806 14.025014.0250 2,530,1232,530,123 3030--NovNov--0606

1616 136,500136,500 106,929106,929 29,57129,571 14.025014.0250 2,423,1942,423,194 3030--DecDec--0606

1717 136,500136,500 108,179108,179 28,32128,321 14.025014.0250 2,315,0152,315,015 3030--JanJan--0707


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1818 136,500136,500 109,443109,443 27,05727,057 14.025014.0250 2,205,5722,205,572 2828--FebFeb--0707

1919 136,500136,500 110,722110,722 25,77825,778 14.025014.0250 2,094,8492,094,849 3030--MarMar--0707

2020 136,590136,590 112,106112,106 24,48424,484 14.025014.0250 1,982,7431,982,743 3030--AprApr--0707

2121 136,590136,590 113,417113,417 23,17323,173 14.025014.0250 1,869,3261,869,326 3030--MayMay--0707

2222 136,590136,590 114,742114,742 21,84821,848 14.025014.0250 1,754,5841,754,584 3030--JunJun--0707 2,459,584 2,459,584

2323 136,590136,590 116,083116,083 20,50720,507 14.025014.0250 1,638,5011,638,501 3030--JulJul--0707

2424 136,590136,590 117,440117,440 19,15019,150 14.025014.0250 1,521,0611,521,061 3030--AugAug--0707

2525 136,590136,590 118,813118,813 17,77717,777 14.025014.0250 1,402,2481,402,248 3030--SepSep--0707

2626 136,325136,325 120,404120,404 15,92115,921 13.624413.6244 1,281,8441,281,844 3030--OctOct--0707 00

2727 136,325136,325 121,771121,771 14,55414,554 13.624413.6244 1,160,0721,160,072 3030--NovNov--0707

2828 136,325136,325 123,154123,154 13,17113,171 13.624413.6244 1,036,9191,036,919 3030--DecDec--0707

2929 136,325136,325 124,552124,552 11,77311,773 13.624413.6244 912,366912,366 3030--JanJan--0808

3030 136,325136,325 125,966125,966 10,35910,359 13.624413.6244 786,400786,400 2929--FebFeb--0808

3131 136,395136,395 127,349127,349 9,0469,046 13.804413.8044 659,052659,052 3030--MarMar--0808

3232 136,395136,395 128,813128,813 7,5827,582 13.804413.8044 530,238530,238 3030--AprApr--0808

3333 136,395136,395 130,295130,295 6,1006,100 13.804413.8044 399,943399,943 3030--MayMay--0808

3434 136,395136,395 131,794131,794 4,6014,601 13.804413.8044 268,149268,149 3030--JunJun--0808

3535 136,395136,395 133,310133,310 3,0853,085 13.804413.8044 134,838134,838 3030--JulJul--0808

3636 136,395136,395 134,838134,838 1,5571,557 13.804413.8044 00 3030--AugAug--0808

5,596,7955,596,795 4,700,0004,700,000 896,795896,795


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ORIX LEASING PAKISTAN LTD. C#2004/MP/32251ORIX LEASING PAKISTAN LTD. C#2004/MP/32251

LAB EQUIPMENT LEASELAB EQUIPMENT LEASE 05 05--240240--0101 09 09--420420--0101

PRINCIPALPRINCIPAL 14,000,000 14,000,000

M/UP Or IRR %M/UP Or IRR % 10.72352 10.72352 K+4%K+4% (0) (0)

INSTALMENTINSTALMENT

PERIODPERIOD 60 60 MONTHLY MONTHLY 47 47--100100--007007 09 09--650650--00030003



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S.#S.#

INSTALMINSTALM

ENTENT PRINCIPAL PRINCIPAL C.M.C.M. INTREST INTREST IRR %IRR % BALANCE BALANCE

PaymentPayment

DatDatee

14,000,00014,000,000

00 1,400,0001,400,000 1,400,0001,400,000 00 12,600,00012,600,000 16,076,31016,076,310

11 905,855905,855 905,855905,855 00 11,694,14511,694,145 2525--AprApr--0404 13,770,455 13,770,455

22 905,855905,855 679,281679,281 226,574226,574 7.750007.75000 11,014,86411,014,864 2525--JulJul--0404 11,958,745 11,958,745

33 905,855905,855 692,442692,442 213,413213,413 7.750007.75000 10,322,42210,322,422 2525--OctOct--0404 10,373,609 10,373,609

44 905,855905,855 705,858705,858 199,997199,997 7.750007.75000 9,616,5649,616,564 2525--JanJan--0505 8,775,312 8,775,312

55 905,855905,855 719,534719,534 186,321186,321 7.750007.75000 8,897,0308,897,030 2626--AprApr--0505 7,163,599 7,163,599

66 905,855905,855 733,475733,475 172,380172,380 7.750007.75000 8,163,5558,163,555 2626--JulJul--0505 5,538,210 5,538,210

77 905,855905,855 747,686747,686 158,169158,169 7.750007.75000 7,415,8697,415,869 2525--OctOct--0505 3,898,880 3,898,880

88 905,855905,855 762,173762,173 143,682143,682 7.750007.75000 6,653,6966,653,696 2525--JanJan--0606 2,245,339 2,245,339

99 905,855905,855 776,939776,939 128,916128,916 7.750007.75000 5,876,7575,876,757 2525--AprApr--0606 577,311577,311

1010 931,945931,945 774,396774,396

3,224,3903,224,390

157,549157,549 10.7235210.72352 5,102,3615,102,361 2525--JulJul--0606

1111 931,945931,945 795,157795,157 136,788136,788 10.7235210.72352 4,307,2044,307,204 2525--OctOct--0606

1212 931,945931,945 816,474816,474 115,471115,471 10.7235210.72352 3,490,7303,490,730 2525--JanJan--0707

1313 931,945931,945 838,363838,363 93,58293,582 10.7235210.72352 2,652,3672,652,367 2525--AprApr--0707

1414 931,945931,945 860,838860,838 71,10771,107 10.7235210.72352 1,791,5291,791,529 2525--JulJul--0707

1515 931,945931,945 883,916883,916 48,02948,029 10.7235210.72352 907,613907,613 2525--OctOct--0707

1616 931,945931,945 907,613907,613 24,33224,332 10.7235210.72352 (0)(0) 25 25--JanJan--0808

16,076,31016,076,310 14,000,00014,000,000 2,076,3102,076,310


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UNION LEASING LTD. C#1464/JKF/07/2003UNION LEASING LTD. C#1464/JKF/07/2003

6 DRAWING FRAMES RSB D6 DRAWING FRAMES RSB D--3535 05 05--230230--11 0909--410410--001001

PRINCIPALPRINCIPAL 19,800,000 19,800,000

UPTOUPTO

INSTAL.INSTAL.

M/UP Or IRR %M/UP Or IRR % 13.4400 13.4400 66 00

INSTALMENTINSTALMENT 134,380 134,380 3737--100100--00010001

PERIODPERIOD 20 20 QuartersQuarters



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INSTALMENTINSTALMENT PRINCIPAL PRINCIPAL INTREST INTREST IRR %IRR % BALANCE BALANCE

19,800,00019,800,000

L.K .MoneyL.K .Money 990,000990,000 990,000990,000 00 18,810,00018,810,000

11 1,206,6071,206,607 736,357736,357 470,250470,250 10.000010.0000 18,073,64318,073,643 2828--OctOct--0303

22 1,206,6071,206,607 754,766754,766 451,841451,841 10.000010.0000 17,318,87717,318,877 2828--JanJan--0404

33 1,206,6071,206,607 773,635773,635 432,972432,972 10.000010.0000 16,545,24216,545,242 2828--AprApr--0404

44 1,206,6071,206,607 792,976792,976 413,631413,631 10.000010.0000 15,752,26615,752,266 2828--JulJul--0404

55 1,206,6071,206,607 812,800812,800 393,807393,807 10.000010.0000 14,939,46614,939,466 2828--OctOct--0404

66 1,206,6071,206,607 833,120833,120 373,487373,487 10.000010.0000 14,106,34514,106,345 2828--JanJan--0505

77 1,206,6071,206,607 853,948853,948 352,659352,659 10.000010.0000 13,252,39713,252,397 2828--AprApr--0505

88 1,206,6071,206,607 875,297875,297 331,310331,310 10.000010.0000 12,377,10012,377,100 2828--JulJul--0505

99 1,244,9141,244,914 871,126871,126 373,788373,788 12.080012.0800 11,505,97411,505,974 2828--OctOct--0505

1010 1,244,9141,244,914 897,434897,434 347,480347,480 12.080012.0800 10,608,54110,608,541 2828--JanJan--0606

1111 1,247,1371,247,137 923,046923,046 324,091324,091 12.220012.2200 9,685,4959,685,495 2828--AprApr--0606

1212 1,247,1371,247,137 951,245951,245

3,958,6103,958,610

295,892295,892 12.220012.2200 8,734,2508,734,250 2828--JulJul--0606

1313 1,263,2161,263,216 969,745969,745 293,471293,471 13.440013.4400 7,764,5047,764,504 2828--OctOct--0606

1414 1,263,2161,263,216 1,002,3291,002,329 260,887260,887 13.440013.4400 6,762,1766,762,176 2828--JanJan--0707

1515 1,264,3601,264,360 1,035,2911,035,291 229,069229,069 13.550013.5500 5,726,8845,726,884 2828--AprApr--0707

1616 1,264,3601,264,360 1,070,3621,070,362 193,998193,998 13.550013.5500 4,656,5234,656,523 2828--JulJul--0707

1717 1,259,8531,259,853 1,109,0981,109,098 150,755150,755 12.950012.9500 3,547,4243,547,424 2828--OctOct--0707

1818 1,259,8531,259,853 1,145,0051,145,005 114,848114,848 12.950012.9500 2,402,4192,402,419 2828--JanJan--0808

1919 1,259,8531,259,853 1,182,0751,182,075 77,77877,778 12.950012.9500 1,220,3451,220,345 2828--AprApr--0808

2020 1,259,8531,259,853 1,220,3441,220,344 39,50939,509 12.950012.9500 00 2828--JulJul--0808

47,215,64247,215,642 19,800,00019,800,000 5,921,5225,921,522


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CONCLUSIONCONCLUSION

AmortizationAmortization isis thethe gradualgradual repaymentrepayment ofof aa

debtdebt overover aa periodperiod ofof timetime..

AmortizationAmortization isis aa methodmethod forfor repayingrepaying aa

loanloan inin equalequal installmentsinstallments..

AmortizationAmortization alsoalso appliesapplies toto assetasset balances,balances,

suchsuch asas discountdiscount onon notesnotes receivable,receivable,

deferreddeferred charges,charges, andand somesome intangibleintangibleassetsassets..


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loan,lease,amortization.. (1)

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