1) Loan amortization schedule Joan Messineo borrowed $40,000 at a 6% 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.

2) Annuities and compounding Janet Boyle intends to deposit $220 per year in a credit union for the next 5 years, and the credit union pays an annual interest rate of 9%.

a.Determine the future value that Janet will have in

5 years, given that end-of-period deposits are made and no interest is withdrawn, if

(1) $220 is deposited annually and the credit union pays interest annually.

(2) $110 is deposited semiannually and the credit union pays interest semiannually.

(3) $55 is deposited quarterly and the credit union pays interest quarterly.