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a. Complete an amortization schedule for a $30,000 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. Beginning Balance Repayment of Principal Remaining Balance Year Payment Interest 1 $ 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. % Principal % Interest Year 1 Year 2: % % % % Year 3: % % Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year i 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. -Select- You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $400. The loan will have a 6% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $ Financed for 60 months: $ A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 6%. He has been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: 1 2 3 4 Contract 1 $3,500,000 $3,500,000 $3,500,000 $3,500,000 Contract 2 $2,000,000 $3,500,000 $4,500,000 $5,500,000 Contract 3 $6,500,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept? Select the correct answer. Ca. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3. Ob. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2. Oc. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. Od. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1. Oe. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3