At its simplest, this ought to be:
balance brought forward
+drawdown
-repayment
+interest
= ending bal
The concept of repayment is that you never model more repayment more than the amount of loan that is accrued in that period. So if you have capability to repay $1m, but the loan /drawdown during the period is $100, you repay $100.
But where is the remainder of this 'pot' in the corkscrew calculation (i.e. $1m - $100) and why is it not carried forward onto the next period? Surely the fact that you have cash in the bank should be taken into consideration in your repayment capability for the period immediately after?
Thanks.
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