Ch 0S: Excel Online Activity: Amortization schedule Question 1 0/10 Submit Open spreadsheet a. Complete an amortization schedule for a $50,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 8% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Payment of Principal b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal % Interest % Principal Year 1: Year 2: Year 3: c. Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the III. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the 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 V. These percentages do not change over time; interest and principal are each a constant percentage of the total payment. remaining or outstanding balance declines remaining or outstanding balance declines. remaining or outstanding balance increases. remaining or outstanding balance increases. Check My Work Reset Problem Current score: 010 pts (0%) 1558324799000 Back Next Excel Online template - Saved File Home Insert Data ReviewView Tell me what you want to do Comments Cut 10 A A currency AutoSum s-%,5848 Conditional Format Formatting as Table Clearort&Find & FilterSelect Insert Delete Format Format Painter B8 1 Amortization schedule Loan amount to be repaid (PV) 4 Interest rate (r) 5 Length of loan (in years) $50,000.00 8.00% 7 a. Setting up amortization table 8 Calculation of loan payment 9 Formula Repayment of 10 Balance Remaining Balance 12 13 14 15 b. Calculating % of Payment Representing interest and Principal for Each Year Excel Online template - Saved File Home Insert Data Review View Tell me what you want to do Comments currency AutoSum Format Painter B lue l' s-% , sg 48 F Conditional Format Insert Delete Format Formatting as Table Ocear- Filter& Sort & Find & FilterSelect Select& Payment % Payment % 16 17 18 19 Year Interest Principal Check: Total: 100% 21 Formulas Repayment of Principal #N/A #N/A Balance 23 24 25 26 27 #N/A #N/A #N/A #N/A HN/A #N/A #N/A b. Calculating % of Payment Representing Interest and Principal for Each Year Payment 96 Payment % 28 29 30 31 Check Total: 100% ANIA Interest HN/A #N/A #N/A #N/A 4 Sheet1