Question: Paco borrowed $ 4 8 , 0 0 0 at a 8 % annual rate of interest to be repaid over 3 years. The loan

Paco borrowed
$48,000
at a
8%
annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.
a.Calculate the annual, end-of-year loan payment.
b.Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments.
c. Explain why the interest portion of each payment declines with the passage of time.
a. the amount equal, annual, end of year loan payment is ?

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