Now let's deal with our repayments. I want to set up a flag that says when am I going to make repayments? I start making repayments in the fifth year. So I want a flag that says, when am I in year five or later. If the year is bigger than or equal to 5, that's C14. Fix that. If it is, give me a 1 that's a repayment period, or a zero, it's a non repayment period. First period is zero and you'll see it turns to a one from year five onwards. Now we can do our repayments. If the repayment period flag is a zero, there's not gonna be any repayments. Let's do that bit first. If that equals zero, then zero repayment. If it's not zero, when it's a 1 from year five onwards, then how much am I going to repay? I'm going to repay that number there. 1,958 divided by how many installments? Five installments.

If I copy that across, I've got two problems. Firstly, this should be a negative. I want to show it as a payment, so I'll make that negative and then copy that across. And you can see we've got a problem here. We've got five installments and it comes down to zero after the fifth one. We really don't want to make that. It's unnecessary to make that sixth payment because the debt is already at zero, I shouldn't need to make any payment. In the 10th year. I've finished my five payments and it's got my debt balance down to zero as planned. What I need to do to prevent that last number from being generated is I want the minimum of C30 divide by C15. That's my installment of 391 or the debt balance, whichever is lower. So if the debt balance is zero, then you pay zero. If the debt balance is 391 or more, you'd pay 391. If the flag is a zero, give me zero. Otherwise it's the lower of my installment, which is 1,958 divided by 5,391 or the debt balance, whichever of those two is lower. Let's do the interest expense. So this is what would appear in the income statement. It is just the debt balance before any interest, multiply by 5%, put the dollar signs on the 5%, we'll copy that across.

But now how much of that actually gets paid as it falls due? Only the amounts from year four onwards? So the amount that gets paid is the interest expense minus the amount that gets added to the debt, which happens in year two and year three because during that period we don't have any cash available. So no payment of interest happens in year two and year three, but we do pay the interest from year four onwards, and you can see the amount is decreasing. Each year as we make payments on the debt, the remaining balance is lower and therefore we have less interest for years two and three, that 65 and the 93 get added onto the debt and they're included in the 1,958.

That ultimately gets repaid in five equal installments of 391.7 and that gets us down to zero after the fifth installment.