Able Medical Clinic has borrowed $50 million from a bank under the following terms: Payments are to
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- Able Medical Clinic has borrowed $50 million from a bank under the following terms:
Payments are to be made end of every quarter for next 10 years.
Interest Rate is 8.4 percent compounded quarterly.
The firm also plans to make additional $15 million payment towards principal.
The payment is spread as follows: $3 million each at the end of Q4, Q8, Q12, Q16 and Q20.
- Prepare an amortization table. Use Excel to do this. Show the complete amortization table.It is a good idea to copy the table and print the result as a picture, so that you can format it neatly for an elegant presentation. Remember that neatness of presentation matters as listed under Notes, above
- How much interest did you pay over the term of the loan?
- How many quarters did you eliminate out of the original loan because of additional principal payments?
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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