20 years ago XYZ Inc. took out a $100 million loan with an interest rate of 6 percent compounded quarterly over its 35 year life. With interest rates now so low, XYZ is now looking to potentially refinance the loan.

A. Show how much interest was paid on the loan last year

B. If new debt with an interest rate of 4.75 percent compounded quarterly can be raised with a 2 percent flotation cost, should they refinance this loan?

Please show using Excel formulas