§ 85.11 – How should I estimate annual total PMT for the PPMT option?

(a)    You should multiply your sample PMT/PPMT ratio for the entire annual sample with the annual total of your PPMT to get an estimate of the annual total PMT if your  sampling plan is not based on service grouping, or

(b)   You should take a two-step approach if your sampling plan is based on service grouping:

(1)   Multiply your sample PMT/PPMT ratio with your corresponding annual total PPMT for each group, and

(2)   Sum the above products across all groups to get your annual total PMT.