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Apollo Medical Clinic has borrowed $60 million from a bank under the following terms: Payments...

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Accounting

Apollo Medical Clinic has borrowed $60 million from a bank under the following terms: Payments are to be made at the end of every quarter for the next 15 years. The interest rate is 9.00 percent compounded quarterly. After signing the loan, the firm decides to pay extra money towards the principal at the end of each year for the first 5 years it is paid once a year at the end of the year. The amount paid each time is $3.5 million. Prepare and show the amortization table (done best in Excel. Answer the questions listed below.

  1. How much interest did you pay over the term of the loan?
  2. What is the outstanding balance at the end of the 6th year?
  3. What is the total interest paid for the term of the loan?
  4. When will the loan end? Provide year number and quarter number.

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