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Explore Inc., a mining company, is currently negotiating a $600 million fifteen-year loan with a syndicate of banks for the development and operation of a mine. This syndicate has agreed to the following loan terms with Explore Inc.:

• All payments will be made up of amortization and interest.
• During the first three years of the loan:
  • Payments will be made at the end of each quarter.
  • The first quarterly payment will be for an amount equal to $7.5 million. Thereafter, the quarterly payment will increase linearly (that is, by a fixed amount each quarter) until it reaches $20 million at the end of the third year.
  • The interest rate that will be charged for the loan will be 3% nominal annual with quarterly compounding.
• In the following years:
  • Explore will make constant payments at the end of each semi-year until the loan is paid off.
  • The interest rate in this period will be 18% nominal annual with quarterly compounding.

Calculate the outstanding loan balance at the end of the third year. [ Seleccionar ] ["$495.10 million", "$485.57 million", "$498.28 million", "$488.75 million", "$491.93 million"]

Calculate the amount of semi-annual payment that Explore Inc. will make from the fourth year onward. [ Seleccionar ] ["$52.16 million", "$51.83 million", "$50.83 million", "$51.50 million", "$51.16 million"]

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