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II. Big Stone II Debt Payments Example <br /> The pattern of payments on the Big Stone II project will be very similar to a home mortgage in <br /> the previous example. <br /> Assume that a 30 Megawatt ERMU share of BSPII would cost $123 million, and would be <br /> financed with a 30 year bond at 5.5%/year interest rate. The monthly payments will be: <br /> $123 million * (A/P, 360 months, 5.5%/12) = $689,380 per month. <br /> Similar to our home mortgage example, the mortgage payment of$698,380 per month includes <br /> payment of the principal and payment of interest. <br /> The payments of principal and interest in any particular year are illustrated below: <br /> Annual Payments on a $123,000,000 Bond, <br /> 30 years at 5.5% per year <br /> $9,000,000 . . __._..._ _.._ ....... <br /> $8,000,000 <br /> $7,000,000 - Payments <br /> :gggg <br /> principal <br /> _ _ —____ — ____ _ —a—Annual Payments <br /> o $4,000,000 --- A <br /> $3,000,000 <br /> $2,000,000 - Interest_ <br /> $1,000,000 <br /> • <br /> $0 _ <br /> M Laf� M 2 1(1,1 I� <br /> � V � N N <br /> Year <br /> Over the 30 year period: <br /> Total of monthly payments = 360 * $689,380 per month = $248,177,000 <br /> Payments toward principal = ($123,000,000) <br /> Interest = $125,177,000 <br /> 2 <br />