Let's move down then to workout number two and workout number two is going to have an equal amortization each year. On the repayment line, we'll make it a negative because it's a payment. How much do we owe 100,000. Put the dollar signs on that. And I need to pay that off in five installments. So divide by five and put the dollar signs on that.

So 20,000 a year, copy that through, and you can see five installments of 20,000 reduces the loan down to zero. Again, we don't want that sixth payment because the loan is already fully paid off by the end of year five. So sixth year should be a zero payment. Again, we'll do this as a min function, so we'll make it minus the minimum of what we've just worked out the 20,000 a year, or the amount of the debt that's owed, which is the line straight above number 31. And there we go. In the sixth year, it's saying my usual installment would be 100 divided by five 20,000, but I'm limiting it to the amount of debt that's actually owed. 20,000 or zero debt owed. Which one's less? I'll pick the zero. Notice that the interest is not included. This is a principle repayment only. In addition to that, this borrower is going to need to pay interest, but the interest amount will reduce as the loan gradually gets paid off. Let's look at workout number three. Same idea, but this time we're going to take the cash amount that's available for principal payments and take 70% of that. So this is a cash sweep. So our repayment is going to be, let's make it a negative. The cash available in each year multiplied by the 70%. Fix the 70% in the first year. We have 30,000 of cash available. 70% of that is 21,000. Copy that across to the right add each year as the cash flow is rising, 70% of that increased number is what we use to pay our principle of the debt. And that works fine until year four. And in year four, we are paying too much. We have overpaid by 5,000. So we need to limit the amount of this cash sweep. It's 70% of cash that's available or the debt balance, whichever one of those two is less. In this case, in year four, 70% of cash is 31,500, but we only owe 26,500, so it should be 26,500.

If we paid that amount, we'll reduce the total to zero. So as we did before, it's minus the minimum of what we've just worked out. And the debt balance, which is the line straight above line 52, and we'll copy that through. In year four what we will pay is the lower of 70% of our cashflow. 45 times 70 is 31,500 or the debt balance, which is 26,500, 26,500 is all we need to pay. And then it reduces to zero in the following years. Zero payments.

Again, these are principal payments only. In addition to that, we pay interest, but the interest amount will drop as we make the payments. The fourth workout is a bullet style repayment. That means we pay everything, all of it, all in one go. And when are we going to pay that? In the fifth year. So what we want to know is when we are in the fifth year, mark it up at that point, we will then repay the entire balance. Any other year we will pay nothing. So on the repayment line, we will say minus if the year we are in equals the fifth year. If that's true, and I'll fix that fifth year. If that's true, pay the entire balance, which is just the line above line 69. If it's not true, pay nothing. So pay the entire balance. If it's the fifth year, any other year, pay zero. Let's copy that through.

And there we are. The whole amount is paid off in the fifth year and no other year has any payments. Notice in this case that the interest continues on the entire balance until that final payment. There is no reduction in years 1, 2, 3, 4.