Amortization Schedule

$7.$

$8.$

Consider a $$20,000$ loan to be repaid in equal installments at the end of each of the next $5$ years. The interest rate is $11\%.$

a$.$ Set up an amortization schedule for the loan. Do not round intermediate calculations. Round your answers to the nearest cent. If no entry is required, enter $"0".$

$10.$

$\backslash$table$[[$Year$,,$Payment,Repay,Repay,,Balance$],[1,$$$,,$$$,$$$,$$$,],[2,$$$,,$$$,$$$,$$$,],[3,$$$,,$$$,$$$,$$$,],[4,$$$,,$$$,$$$,$$$,],[5,$$$,,$$$,$$$,$$$,],[$Total$,$$$,,$$$,$$$,,]]$ calculations. Round your answer to the nearest cent.

$ $$ amount as the loan in part $b,$ but the payments are spread out over twice as many periods. Do not round intermediate calculations. Round your answer to the nearest cent.

$ $$ Why are these payments not half as large as the payments on the loan in part b$?$

I. Because the payments are spread out over a longer time period, less interest is paid on the loan, which lowers the amount of each payment.

II$.$ Because the payments are spread out over a shorter time period, more interest is paid on the loan, which lowers the amount of each payment.

III. Because the payments are spread out over a longer time period, more interest must be paid on the loan, which raises the amount of each payment.

IV$.$ Because the payments are spread out over a longer time period, more principal must be paid on the loan, which raises the amount of each payment.

V$.$ Because the payments are spread out over a longer time period, less interest is paid on the loan, which raises the amount of each payment.