Table 1

Overview on possible outcomes for six possible loan allocations as shown to participants

Distribution between fixed and flexible interest rate
Fixed (2.5%)100,00080,00060,00040,00020,0000
Flexible020,00040,00060,00080,000100,000

Outcome of die roll

Flexible interest rate

Cost saving contingent on distribution and interest rate outcome

 

1.90%

2,500

2,860

3,220

3,580

3,940

4,300

 

2.10%

2,500

2,740

2,980

3,220

3,460

3,700

 

2.30%

2,500

2,620

2,740

2,860

2,980

3,100

 

2.50%

2,500

2,500

2,500

2,500

2,500

2,500

 

2.70%

2,500

2,380

2,260

2,140

2,020

1,900

 

2.90%

2,500

2,260

2,020

1,780

1,540

1,300

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