Interest Payment, Principal Payment, and Total Payment Change

Healthcare Finance
Name
Course
Instructor
Date
Loan amortization
Yearly amortization schedule
Payments Yearly Total Principal Paid Interest Paid Balance Year $1,000,000 Year 1 $266,933.37 $155,290.24 $111,643.13 $844,709.76 Year 2 $266,933.37 $174,984.93 $91,948.44 $669,724.82 Year 3 $266,933.37 $197,177.40  $69,755.97 $472,547.42  Year 4 $266,933.37 $222,184.43 $44,748.94 $250,362.98 Year 5$266,933.37 $250,362.98 $16,570.39 $0.00 Totals $1,334,666.86 $1,000,000.00 $334,666.86 
The amortization schedule represents the list of interest payments, interest payments and the remaining balances when the payment is made. Additionally, the schedule captures the information on what is left to pay. Depending on the frequency of the amortization payments adjusting the payments, then makes it easier to determine what portion is the interest and principal. The interest rates, frequency of payments and the number of months or years to make repayments are considered. The loan liabilities are eliminated over time, and it is necessary to calculate the payable amount that covers the principal and interest.
The amortized requires that one pays both the principal and the interest. Using the constant amount approach makes it easier to determine the component of interest and principal payments on a monthly or annual basis. The payments depend on the remaining loan balance, with an initial payment mostly consisting of the interest. As more payments are made the loan balance reduces, as they now affect the principal and to a lesser extent the interest, the largest portion of the interest rate is paid when the loan payment is complete, while the largest portion of the interest payment are made early.
In calculating the monthly payments this will be A=i*P (1+i) n/ (1+i) = $ 22, 244.45. When the loan is amortized a monthly interest payment of $ 22, 244.45 the annual corresponding to an annual interest payments is $ 266,933.37. The principal payments in amortization represent the difference between the payments made and interest. Subsequently the portion of interest payments falls gradually while the portion of the principal amount increases. It is necessary to understand how amortization affects the loan repayment process, since when a large portion of the payment goes to interest payments less money caters to the principal payment. The ideal situation is to pay the largest portion of the principal payments than the interest payments.
Tax-exempt borrowing market in 2008/ 2009 and health care industry consolidation
The 2008/2009 affected the financial status of the nonprofit and tax exempt organizations they were faced with fewer donations and cut in funding. This resulted in restructuring with the aim of avoiding further financial problems, including cutbacks, mergers and acquisitions (Banjo & Kalita, 2010). Consolidation in the healthcare industry has ac...