Able Medical Clinic has borrowed $45 million from a bank under the following terms: Payments are to be made end of every quarter for next 12 years. Interest rate is 8.4 compounded quarterly.

After signing the loan, the firm decides to pay extra money towards the principal at the end of each year for first 5 years. The amount paid is $2.5 million in each of the year.

Prepare and show the amortization table. Also, answer the questions listed below.

You may like to use Excel to do this (preferred), even though you could do it manually.

1. How much interest did you pay over the term of the loan?
2. What is the outstanding balance at the end of 6^th 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.