1 Excel Online Structured Activity Amortization schedule The data on a loan has been collected in the Microsoft Excel Online file below Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet a Complete an amortization schedule for a $26,000 loan to be repaid in equal installments at the end of each of the next three years The interest rate is 12 compounded annually Round all answers to the nearest cent Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ $ 2 $ $ $ $ $ 3 $ $ $ $ $ b What percentage of the payment represents interest and what percentage represents principal for each of the three years Round all answers to two decimal places Interest Principal Year 1 Year 2 Year 3 c Why do these percentages change over time 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 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 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 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 These percentages do not change over time interest and principal are each a constant percentage of the total payment IIIIIIIVV 2 Excel Online Structured Activity Required annuity payments Your father is 50 years old and will retire in 10 years He expects to live for 25 years after he retires, until he is 85 He wants a fixed retirement income that has the same purchasing power at the time he retires as $50,000 has today (The real value of his retirement income will decline annually after he retires ) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments Annual inflation is expected to be 6 He currently has $145,000 saved, and he expects to earn 7 annually on his savings The data has been collected in the Microsoft Excel Online file below Open the spreadsheet and perform the required analysis to answer the question below Open spreadsheet How much must he save during each of the next 10 years (end of year deposits) to meet his retirement goal Do not round your intermediate calculations Round your answer to the nearest cent $

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1..Excel Online Structured Activity: Amortization schedule The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and

1..Excel Online Structured Activity: Amortization schedule

The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

a. Complete an amortization schedule for a $26,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. Round all answers to the nearest cent.

	Beginning			Repayment	Ending
Year	Balance	Payment	Interest	of Principal	Balance
1	$	$	$	$	$
2	$	$	$	$	$
3	$	$	$	$	$

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

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

c. Why do these percentages change over time?

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

_____IIIIIIIVV

Excel Online Structured Activity: Required annuity payments

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $50,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 6%. He currently has $145,000 saved, and he expects to earn 7% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

Open spreadsheet

How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do not round your intermediate calculations. Round your answer to the nearest cent.