Amortization schedule 3 Loan amount to be repaid (PV) 4 Interest rate (r) $45,000.00 800% 5 Length of loan (in years) 6 7 8 a. Setting up amortization table Calculation of loan payment Formula 10 Repayment of Interest 12 13 15 b. Calculating % of Payment Representing Interest and Principal for Each Year Payment % Payment % 16 17 18 19 20 Interest Check Total#10096 21 Formulas Repayment of Interest #NIA #N/A Principal #N/A 23 24 25 26 27 #N/A #N/A N/A HN/A N/A #NIA b. Calculating % of Payment Representing interest and Principal for Each Year Payment 96 Payment % 28 29 30 31 32 PrrapalCheck Total" 100% epresentr Interest WN/A WNIA #N/A #N/A WN/A c. Why do these percentages change over time? L. These percentages change over time because even though the total payment is conetant the amount of interest pad each year is dedining as the remaining or outstanding balance declines 11. These centage-change over time because even though the tatal paymert s constant the amount or interest psd each yer nreaurgthe-aining or outzand g halance IIl. These percentages change over time because even though the total payment is constant the amount of interest paid each year is decining as the remaining or outstanding balance IV. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance V. These percentages do not change over time: interest and principal are each a constant percentage of the total ayment declines increases increases y Work Reset Problem an amortization schedule for a $45,000 loan to be repaid in equal installments at the end of each of the next three years. The a. Complete answers to the nearest cent. interest rate is 8% compounded annually. Round at Ending Balance Year Balance Payment ioterest payment represents interest and what percentage represents prinopal for each of the three years? Round all answers to two decimal places %Interest %Prinopal Year 1: Year 2: Year 3