Home Insert template - Saved Data Review View Help me what you want to do Aut 10AA Copy Format Painter 969 Artization schedule $4100000 Loan amount to be repaid Incontrare ofon years 9009 L a. Setting up amortization table Calculation of loan payment Calculating of Payment Representing interest and Principal for Each Year Payment Representing Payment Formulas Beginning Balance Pument Hepayment of b. Calculating % of Payment Representing Interest and Principal for Each Year Payment Representi interest Check Total 100% a. Complete an amortization schedule for a $41,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent. Ending Beginning Balance Repayment of Principal Payment Interest Balance Year 1 2 $ $ 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? 1. 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 chance over time because even though the total payment is constant the amount of interest bald 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. % Principal % Interest Year 1: Year 2: 0 Year 3: % % % c. Why do these percentages change over time? 1. 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. c. Why do these percentages change over time? 1. 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 t . . declining as the remaining or outstanding balance increases. IV. These percentages change over time because even though the total payment is constant !! increasing as the remaining or outstanding balance increases. V. These percentages do not change over time; interest and principal are each a constant per a. Complete an amortization schedule for a $41,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent. Beginning Balance Repayment of Principal Ending Balance Payment Interest Year 1 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? Amortization schedule Loan amount to be repaid (PV) Interest rate Length of loan in years) $41,000.00 9.00% a. Setting up amortization table Calculation of loan payment Formula #N/A Year Beginning Balance Payment Interest Repayment of Principal Remaining Balance b. Calculating % of Payment Representing Interest and Principal for Each Year Year Payment % Representing Interest Payment % Representing Principal Year Represente no erest Repo rting Check Total = 100% Check: Total = 100% Payment % Representing Interest Payment % Representing Principal Year Check: Total = 100% 2 3 Formulas Year Beginning Balance #N/A #N/A #N/A Payment #N/A #N/A #N/A Interest #N/A #N/A #N/A Repayment of Principal #N/A #N/A #N/A Remaining Balance #N/A #N/A #NIA b. Calculating % of Payment Representing Interest and Principal for Each Year Payment % Payment % Representing Year Representing Interest Principal Check: Total = 100% #N/A #N/A #N/A #N/A #N/A #N/A UNIA NIA #NIA