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BOOK 26 F;GE 1.0
We want to now talk about the chart that I refer
to as the mortgage chart. I see Mr. Anderson Sherrill
back there. When I came to Statesville, he was kind
enough to sell me a house, or sell me his house. And
I paid an amount for it, and when I went down to the
savings and loan and signed the papers, the figures were
three times that amount. And that's what we're talking
about here, is the payback.
And this too, is based on a 12% interest rate
and we would pay the bonds back over a 20 -year, six-month
period. The total payback is $39 million for Iredell
Memorial. That's based upon 12% interest rate. One
of our financial consultants today calculated what the
payback would be if the interest rate was 10%. You
know how accountants are always being, conservative.
If they sold in Wilmington last week for 9%, we felt that
10% would be a reasonable figure to try out today.
We don't know what the interest rate will be when the
bonds are issued, but we are hoping to be in a position
where they can be issued at the optimal time.
A 10% interest rate will drop this payback figure
by $5 million for Iredell Memorial.
Thank you.