Prepared by: Dr. Salih KATIRCIOGLU
Cases in Banking and Finance
Annuity payment for a loan at the end of the period
Loan: 15,000,000,000.00 TL
Interest Rate: 7.77% per month 93.24% per annum
Maturity: 12
Annuity Payment: -1,966,770,305.38 TL Loan( PV )
Annuity ( pmt )
1,966,770,305.38 TL
1 1 i / i
n
Period Annuity Payment Interest Payment Loan Payment Balance Due
Jan-04 1,966,770,305.38 TL 1,165,500,000.00 TL 801,270,305.38 TL 14,198,729,694.62 TL
Feb-04 1,966,770,305.38 TL 1,103,241,297.27 TL 863,529,008.11 TL 13,335,200,686.52 TL
Mar-04 1,966,770,305.38 TL 1,036,145,093.34 TL 930,625,212.04 TL 12,404,575,474.48 TL
Apr-04 1,966,770,305.38 TL 963,835,514.37 TL 1,002,934,791.01 TL 11,401,640,683.47 TL
May-04 1,966,770,305.38 TL 885,907,481.11 TL 1,080,862,824.27 TL 10,320,777,859.20 TL
Jun-04 1,966,770,305.38 TL 801,924,439.66 TL 1,164,845,865.72 TL 9,155,931,993.48 TL
Jul-04 1,966,770,305.38 TL 711,415,915.89 TL 1,255,354,389.48 TL 7,900,577,603.99 TL
Aug-04 1,966,770,305.38 TL 613,874,879.83 TL 1,352,895,425.55 TL 6,547,682,178.45 TL
Sep-04 1,966,770,305.38 TL 508,754,905.27 TL 1,458,015,400.11 TL 5,089,666,778.33 TL
Oct-04 1,966,770,305.38 TL 395,467,108.68 TL 1,571,303,196.70 TL 3,518,363,581.63 TL
Nov-04 1,966,770,305.38 TL 273,376,850.29 TL 1,693,393,455.09 TL 1,824,970,126.55 TL
Dec-04 1,966,770,305.38 TL 141,800,178.83 TL 1,824,970,126.55 TL 0.00 TL
TOTAL 23,601,243,664.54 TL 8,601,243,664.54 TL 15,000,000,000.00 TL
Prepared by: Dr. Salih KATIRCIOGLU
Cases in Banking and Finance
Annuity payment for a loan at the beginning of the period
Loan: 15,000,000,000.00 TL
Interest Rate: 7.77% per month 93.24% per annum
Maturity: 12
Annuity Payment: -1,824,970,126.55 TL
1 1 i / i /1 i
(
Loan PV)
1,824,970,126.55 TL Annuity pmt)
( n
Period Annuity Payment Interest Payment Loan Payment Balance Due
Jan-04 1,824,970,126.55 TL 0.00 TL 1,824,970,126.55 TL 13,175,029,873.45 TL
Feb-04 1,824,970,126.55 TL 1,023,699,821.17 TL 801,270,305.38 TL 12,373,759,568.08 TL
Mar-04 1,824,970,126.55 TL 961,441,118.44 TL 863,529,008.11 TL 11,510,230,559.97 TL
Apr-04 1,824,970,126.55 TL 894,344,914.51 TL 930,625,212.04 TL 10,579,605,347.93 TL
May-04 1,824,970,126.55 TL 822,035,335.53 TL 1,002,934,791.01 TL 9,576,670,556.92 TL
Jun-04 1,824,970,126.55 TL 744,107,302.27 TL 1,080,862,824.27 TL 8,495,807,732.65 TL
Jul-04 1,824,970,126.55 TL 660,124,260.83 TL 1,164,845,865.72 TL 7,330,961,866.93 TL
Aug-04 1,824,970,126.55 TL 569,615,737.06 TL 1,255,354,389.48 TL 6,075,607,477.45 TL
Sep-04 1,824,970,126.55 TL 472,074,701.00 TL 1,352,895,425.55 TL 4,722,712,051.90 TL
Oct-04 1,824,970,126.55 TL 366,954,726.43 TL 1,458,015,400.11 TL 3,264,696,651.79 TL
Nov-04 1,824,970,126.55 TL 253,666,929.84 TL 1,571,303,196.70 TL 1,693,393,455.09 TL
Dec-04 1,824,970,126.55 TL 131,576,671.46 TL 1,693,393,455.09 TL 0.00 TL
TOTAL 21,899,641,518.55 TL 6,899,641,518.55 TL 15,000,000,000.00 TL
DEPRECIATION METHODS
Cost of Machine: $10,000,000.0
Salvage Value: $100,000.0
Useful Life: 20 yrs
1. Straight Line Depreciation
Beginning Depreciation Total Ending
Years Year Value Value Depreciation Year Value
2003 $10,000,000.0 $495,000.00 $495,000.00 $9,505,000.00
2004 $9,505,000.00 $495,000.00 $990,000.00 $9,010,000.00
2005 $9,010,000.00 $495,000.00 $1,485,000.00 $8,515,000.00
2006 $8,515,000.00 $495,000.00 $1,980,000.00 $8,020,000.00
2007 $8,020,000.00 $495,000.00 $2,475,000.00 $7,525,000.00
2008 $7,525,000.00 $495,000.00 $2,970,000.00 $7,030,000.00
2009 $7,030,000.00 $495,000.00 $3,465,000.00 $6,535,000.00
2010 $6,535,000.00 $495,000.00 $3,960,000.00 $6,040,000.00
2011 $6,040,000.00 $495,000.00 $4,455,000.00 $5,545,000.00
2012 $5,545,000.00 $495,000.00 $4,950,000.00 $5,050,000.00
2013 $5,050,000.00 $495,000.00 $5,445,000.00 $4,555,000.00
2014 $4,555,000.00 $495,000.00 $5,940,000.00 $4,060,000.00
2015 $4,060,000.00 $495,000.00 $6,435,000.00 $3,565,000.00
2016 $3,565,000.00 $495,000.00 $6,930,000.00 $3,070,000.00
2017 $3,070,000.00 $495,000.00 $7,425,000.00 $2,575,000.00
2018 $2,575,000.00 $495,000.00 $7,920,000.00 $2,080,000.00
2019 $2,080,000.00 $495,000.00 $8,415,000.00 $1,585,000.00
2020 $1,585,000.00 $495,000.00 $8,910,000.00 $1,090,000.00
2021 $1,090,000.00 $495,000.00 $9,405,000.00 $595,000.00
2022 $595,000.00 $495,000.00 $9,900,000.00 $100,000.00
DEPRECIATION METHODS
Cost of Machine: $10,000,000.0
Salvage Value: $100,000.0
Useful Life: 20 yrs
2. Fixed Declining balance Method
Beginning Depreciation Total Ending
Years Period Year Value Value Depreciation Year Value
2003 1 $10,000,000.0 $2,060,000.00 $2,060,000.00 $7,940,000.00
2004 2 $7,940,000.00 $1,635,640.00 $3,695,640.00 $6,304,360.00
2005 3 $6,304,360.00 $1,298,698.16 $4,994,338.16 $5,005,661.84
2006 4 $5,005,661.84 $1,031,166.34 $6,025,504.50 $3,974,495.50
2007 5 $3,974,495.50 $818,746.07 $6,844,250.57 $3,155,749.43
2008 6 $3,155,749.43 $650,084.38 $7,494,334.95 $2,505,665.05
2009 7 $2,505,665.05 $516,167.00 $8,010,501.95 $1,989,498.05
2010 8 $1,989,498.05 $409,836.60 $8,420,338.55 $1,579,661.45
2011 9 $1,579,661.45 $325,410.26 $8,745,748.81 $1,254,251.19
2012 10 $1,254,251.19 $258,375.75 $9,004,124.55 $995,875.45
2013 11 $995,875.45 $205,150.34 $9,209,274.90 $790,725.10
2014 12 $790,725.10 $162,889.37 $9,372,164.27 $627,835.73
2015 13 $627,835.73 $129,334.16 $9,501,498.43 $498,501.57
2016 14 $498,501.57 $102,691.32 $9,604,189.75 $395,810.25
2017 15 $395,810.25 $81,536.91 $9,685,726.66 $314,273.34
2018 16 $314,273.34 $64,740.31 $9,750,466.97 $249,533.03
2019 17 $249,533.03 $51,403.80 $9,801,870.77 $198,129.23
2020 18 $198,129.23 $40,814.62 $9,842,685.40 $157,314.60
2021 19 $157,314.60 $32,406.81 $9,875,092.20 $124,907.80
2022 20 $124,907.80 $25,731.01 $9,900,823.21 $99,176.79
DEPRECIATION METHODS
Cost of Machine: $10,000,000.0
Salvage Value: $100,000.0
Useful Life: 20 yrs
3. Double Declining balance Method
Beginning Depreciation Total Ending
Years Period Year Value Value Depreciation Year Value
2003 1 $10,000,000.0 $1,000,000.00 $1,000,000.00 $9,000,000.00
2004 2 $9,000,000.00 $900,000.00 $1,900,000.00 $8,100,000.00
2005 3 $8,100,000.00 $810,000.00 $2,710,000.00 $7,290,000.00
2006 4 $7,290,000.00 $729,000.00 $3,439,000.00 $6,561,000.00
2007 5 $6,561,000.00 $656,100.00 $4,095,100.00 $5,904,900.00
2008 6 $5,904,900.00 $590,490.00 $4,685,590.00 $5,314,410.00
2009 7 $5,314,410.00 $531,441.00 $5,217,031.00 $4,782,969.00
2010 8 $4,782,969.00 $478,296.90 $5,695,327.90 $4,304,672.10
2011 9 $4,304,672.10 $430,467.21 $6,125,795.11 $3,874,204.89
2012 10 $3,874,204.89 $387,420.49 $6,513,215.60 $3,486,784.40
2013 11 $3,486,784.40 $348,678.44 $6,861,894.04 $3,138,105.96
2014 12 $3,138,105.96 $313,810.60 $7,175,704.64 $2,824,295.36
2015 13 $2,824,295.36 $282,429.54 $7,458,134.17 $2,541,865.83
2016 14 $2,541,865.83 $254,186.58 $7,712,320.75 $2,287,679.25
2017 15 $2,287,679.25 $228,767.92 $7,941,088.68 $2,058,911.32
2018 16 $2,058,911.32 $205,891.13 $8,146,979.81 $1,853,020.19
2019 17 $1,853,020.19 $185,302.02 $8,332,281.83 $1,667,718.17
2020 18 $1,667,718.17 $166,771.82 $8,499,053.65 $1,500,946.35
2021 19 $1,500,946.35 $150,094.64 $8,649,148.28 $1,350,851.72
2022 20 $1,350,851.72 $135,085.17 $8,784,233.45 $1,215,766.55
DEPRECIATION METHODS
Cost of Machine: $10,000,000.0
Salvage Value: $100,000.0
Useful Life: 20 yrs
4. Sum of Years` Digits Method
Beginning Depreciation Total Ending
Years Period Year Value Value Depreciation Year Value
2003 1 $10,000,000.0 $942,857.14 $942,857.14 $9,057,142.86
2004 2 $9,057,142.86 $895,714.29 $1,838,571.43 $8,161,428.57
2005 3 $8,161,428.57 $848,571.43 $2,687,142.86 $7,312,857.14
2006 4 $7,312,857.14 $801,428.57 $3,488,571.43 $6,511,428.57
2007 5 $6,511,428.57 $754,285.71 $4,242,857.14 $5,757,142.86
2008 6 $5,757,142.86 $707,142.86 $4,950,000.00 $5,050,000.00
2009 7 $5,050,000.00 $660,000.00 $5,610,000.00 $4,390,000.00
2010 8 $4,390,000.00 $612,857.14 $6,222,857.14 $3,777,142.86
2011 9 $3,777,142.86 $565,714.29 $6,788,571.43 $3,211,428.57
2012 10 $3,211,428.57 $518,571.43 $7,307,142.86 $2,692,857.14
2013 11 $2,692,857.14 $471,428.57 $7,778,571.43 $2,221,428.57
2014 12 $2,221,428.57 $424,285.71 $8,202,857.14 $1,797,142.86
2015 13 $1,797,142.86 $377,142.86 $8,580,000.00 $1,420,000.00
2016 14 $1,420,000.00 $330,000.00 $8,910,000.00 $1,090,000.00
2017 15 $1,090,000.00 $282,857.14 $9,192,857.14 $807,142.86
2018 16 $807,142.86 $235,714.29 $9,428,571.43 $571,428.57
2019 17 $571,428.57 $188,571.43 $9,617,142.86 $382,857.14
2020 18 $382,857.14 $141,428.57 $9,758,571.43 $241,428.57
2021 19 $241,428.57 $94,285.71 $9,852,857.14 $147,142.86
2022 20 $147,142.86 $47,142.86 $9,900,000.00 $100,000.00