Prepare an amortization table


Able Medical Clinic has borrowed $20 million from a bank under the following terms: Payments are to be made end of every quarter for next 10 years. Interest rate is 1.65% per quarter. Prepare an amortization table. You may like to use xl to do this, even though you could do it manually.

a) How much interest did you pay over the term of the loan?

b) What is the outstanding balance at the end of 2 years? Make sure you can compute this using the financial calculator. Verify that the number you obtained from the amortization table is the same as the one obtained using the calculator.

c) Cut and paste the results of the amortization table showing the rows for quarters 1 to 10, and quarters 38 to 40. You can do this by simply hiding the printing of quarters using the format command in xl. You may like to color code the display for quarters 1 to 10 and quarters 38 to 40 to improve readability

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Finance Basics: Prepare an amortization table
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