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How much interest was paid on this loan last year

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Reference no: EM132517571

Twenty years ago ABC 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, ABC is now looking to potentially refinance the loan.

-The accounting department would like to know how much interest was paid on this loan last year

-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?

Reference no: EM132517571

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