Palisade Corporation Rate Example Model
Projecting Interest Rates and Other Trends:
Random Trend and Random Walk
In this example, distribution functions are used to model uncertain trends. Both a simple random trend and
a random walk are illustrated. For each iteration, a new value is sampled for each period in a trend. This
allows your results to include the effects of all possible trend values as opposed to a single set of best
estimates. In the random trend there is no correlation between periods. In the random walk, the value in
each period is influenced by the value of the previous period.
Loan Amount $25,000
Random Trend Analysis
Period 1 2 3 4 5 6 7 8 9 10
Interest Rate #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Remaining Principal $25,000 $23,750 $22,500 $21,250 $20,000 $18,750 $17,500 $16,250 $15,000 $13,750
Principal Payment $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Interest Payment #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Net Payment #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Total (RandomTrend) #NAME?
Random Walk Analysis
Period 1 2 3 4 5 6 7 8 9 10
Interest Rate #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Remaining Principal $25,000 $23,750 $22,500 $21,250 $20,000 $18,750 $17,500 $16,250 $15,000 $13,750
Principal Payment $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Interest Payment #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Net Payment #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Total (Random Walk) #NAME?
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Palisade Corporation Rate Example Model
11 12 13 14 15 16 17 18 19 20
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
$12,500 $11,250 $10,000 $8,750 $7,500 $6,250 $5,000 $3,750 $2,500 $1,250
$1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
11 12 13 14 15 16 17 18 19 20
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
$12,500 $11,250 $10,000 $8,750 $7,500 $6,250 $5,000 $3,750 $2,500 $1,250
$1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
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