Calculation 1
let me get this straight as I think you are doing the wrong calculation here.
we only pay RM7,704 (for the 1st year) and use the dividend to pay for 2nd - 20th years. At 8.5% We will also make a profit of (RM8,500 - RM7,704)= RM796 per year for 19 years which equals to (RM796 x 19)= RM15,124. Our total returns by the 20th year is (RM100,000 + RM15,124) = RM115,124!!!

You said the total payment is RM154,080 but the truth is we only pay RM7,704 from our own pocket money. The rest are paid by don't know who, maybe from your income tax? LOL. So technically for an investment of RM7,704 ONLY we will have a return of RM115,124 in 20 years. That is 1494.34% profit my friend. Equivalent of 74.71% per year. THAT IS HUGE.

Calculation 2
Our own pocket money RM7,704 x 20= RM154,080.
Total returns after 20 years = RM404, 375.
% return = 404,375/154,080 = 262.44% or a mere 13.12% per year.

Now of course if you compare the TOTAL return of calculation 2 is more that calculation 1 but we always compare ROI and if you compare the ROI of loan vs ROI of no loan, don't lie to your self. you now know which is profitable right?

haha well can't blame you then! yes everything is dependent on dividend but ASB have a very good track record if you refer to the history. 8-8.5% is the lowest dividend for the past 20 years. As for you prefer the $ instead of %, I think that is debatable. Here is the scenario:

1. I invested RM7,704 and in 20 years I have made a returns of RM115,124.

2. You invested RM RM154,080 and in 20 years you have made a returns of RM404, 375
So if you notice, I have a +ve cash flow of RM642 each month compare to you (for 19 years). I can used this extra cash flow to expand my portfolio to other types of investment like gold, property, unit trust, etc. So basically I have higher potential return than you by the end of 20 years. Well I don't think I need to specifically detail out what the return would be. you can do your own estimation if you have a +ve cash flow RM642 what can you do with it. that is like 1 gold dinar each month and gold have a been returning almost 30% per year lately.

what I'm trying to say is, leverage is the best investment anybody can do. F*ck, even the Glazer's are doing it to Manchester United! Anyway good luck with your investment!