Consider a $$40,000$ loan to be repaid in equal installments at the end of each of the next $5$ years. The interest rate is $11\%.$

$\backslash$table$[[$Year$,,$ayment,Rep,Interest,Repa,,alance$],[1,$$$,10822\mathrm{.}81,$$$,4400,$$$,$$$,34757\mathrm{.}04],[2,$$$,10822\mathrm{.}81,$$$,,$$$,$$$,27800\mathrm{.}14],[3,$$$,10822\mathrm{.}81,$$$,,$$$,$$$,20038\mathrm{.}20],[4,$$$,10822\mathrm{.}81,$$$,,$$$,$$$,11378\mathrm{.}05],[5,$$$,10822\mathrm{.}81,$$$,,$$$,$$$,1715\mathrm{.}77],[$Total$,$$$,54,114\mathrm{.}05,$$$,,$$$,,]]$

round intermediate calculations. Round your answer to the nearest cent.

$ 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 peritd, more principal must be paid on the loan, which raises the amount of each payment.

II$.$ 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.

III. 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.

IV$.$ 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.

V$.$ 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.