FO Open spreadsheet a. Complete an amortization schedule for a $33,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the nearest cent. Beginning Ending Repayment of Principal Year Balance Payment Interest Balance 1 S $ $ $ $ 2 $ $ $ $ $ 3 $ $ $ $ $ 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 places. % 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 remaining or outstanding balance declines. 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 remaining or outstanding balance declines. 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 remaining or outstanding balance increases. 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 increases. V. These percentages do not change over time; interest and principal are each a constant percentage of the total payment. Excel template Saved Simplified Ribbon File Home Insert Formulas Data Review View Help Tell me what you want to do Editing Comments Arial 10 B Av. Ev Currency E V .. 38 f B C D E F G H I K L M N 0 P Q 1 1 Amortization schedule 2 Loar amount to be repaid (PV) Interest rate) 5 Length of loan (in years) 6 7 a. Setting up amortization tablo 8 Caculation of can payment 9 $33.000.00 10.00% 3 Formula #N/A Repayment of Principal Remaining Balance 10 Year Beginning Balance Payment Interest 11 1 12 2 13 3 14 15 b. Calculating % of Payment Representing Interest and Principal for Each Year Payment Payment 54 Representing Representing Check: Toll 16 Year Interest 100% 17 1 18 2 19 3 20 21 Formulas Principal Bugga 92% Repayment of Principal #N/A ANIA #NA Remaining Balance #N/A WNIA ANIA 22 Year Beginning Balance Payment Interest 22 1 #N/A #N/A #N/A 24 2 #N/A ANJA ANIA 25 3 #N/A #N/A #N/A 26 27 b. Calculating % of Payment Representing Interest and Principal for Each Year Payment" Payment Representing Representing Check: Total 28 Year Interest Principal 100% 29 1 NNUA ONIA ONIA 30 2 #NA NIA #NIA 31 3 #N/A #N/A #NIA 32 Sheet1 + Calculation Mode: Automatic Workbook Statistics Give Feedback to Microsoft - 90% +