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Ch 05: End-of-Chapter Problems - Time Value of Money O X a. Complete an amortization schedule for a $42,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 6% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. ols Beginning Repayment Remaining Year Balance Payment Interest of Principal Balance 1 $ $ $ A-Z 2 3 b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. EE 7- mited % Interest % Principal Year 1: % NJ Year 2: Year 3: % se percentages change over time? -Select- hese percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the maining or outstanding balance declines. hese percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the II maining or outstanding balance declines. III hese percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the maining or outstanding balance increases. IV hese percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the maining or outstanding balance increases. V ese percentages do not change over time; interest and principal are each a constant percentage of the total payment. -Select- v