Problem 5-34 Amortization schedule

1. Set up 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. Round all answers to the nearest cent.

   	Beginning		Remaining
   Year	Balance	Payment	Balance
   1	$	$	$
   2	$	$	$
   3	$	$	$

2. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Round all answers to two decimal places.

   	% Interest	% Principal
   Year 1:	%	%
   Year 2:	%	%
   Year 3:	%	%