Able Express Care borrows $12,000,000 from a bank under the following terms: Payments are made in 6-month intervals for 15 years. Interest rate is 10% Compounded semiannually (i.e., 5% per half-year).

For each question below, you would need to develop an amortization table, best obtained using Excel. The tables are to be included as Appendix A, B and C.

Scenario B. Able skips the four semi-annual payments for years 4 and 5. And, Able will not make up for the skipped payments by paying extra when they resume the usual payment schedule and will pay as per the original schedule for the remaining term. Prepare an amortization table. Show it as Appendix B, on a new page. What is the total interest paid over the entire term (15 years) of the loan?

What is the outstanding loan balance at the end of end of 7th year?

What is the outstanding loan balance at the end of the original loan term?