What would a amortization schedule for a $48,000 loan to be repaid to be paid in equal installments at the end of each of the next three years look like. The interest rate for this loan is plan to be 11% compounded annually. Round all answers to the nearest cent.

b. What percentage of the payment represents interest and what is the percentage represents principal for each of the three years?

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.
2. 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.
3. 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.
4. 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.
5. These percentages do not change over time; interest and principal are each a constant percentage of the total payment.