Payment Pattern in "App B Sh1 - LIC"
Can you please elaborate on the explanation in the wiki "To calculate the amounts paid for 24-36, we must first find the amount of remaining CF paid at time 24-36. This is done by taking 0.1/0.65. We then multiply that with 2500 to get the amount paid in the period. The reason we do this is that at time 12, there are only 65% of cash flow remaining which is represented by 2500."
How do we know that 35% is already paid? What information in the excel sheet tells us that?
Comments
In step 1, the table starts at 2024. This means we are evaluating the LIC at Jan 1 2024. For AY 2023, this then means that 35% of the ultimate has already been paid.