A B C D E Amortization schedule Loan amount to be repaid (PV) Interest rate (0) Length of loan (in years) $20 000 00 9 00 3 a Setting up amortization table Calculation of loan payment Formula N A Repayment of Principal Beginning Balance Payment Interest Remaining Balance Year 1 2 3 b Calculating of Payment Representing Interest and Principal for Each Year Payment Payments Representing Representing Year Interest Principal Check Total 100 3 1 2 3 Formulas 3 4 Year 1 2 3 Beginning Balance N A N A N A Payment N A UNA WNIA Interest N A N A N A Repayment of Principal N A N A N A Remaining Balance N A N A HNIA 6 7 b Calculating of Payment Representing Interest and Principal for Each Year Payment Payment Representing Representing Year Interest Principal 20 1 WNIA ANIA 30 2 NIA N A 31 3 WNA WNIA Check Total 100 WNIA WNIA WNIA 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 1 These percentages change over time because even though the total payment is constant the amount of Interest pald each year is 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 pald 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 pald 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 pald 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 a Complete an amortization schedule for a $20,000 loan to be repaid in equal installments at the end of each of the next three years The interest rate is 9 compounded annually Round all answers to the nearest cent Beginning Balance Repayment Ending Year Payment Interest of Principal Balance 1 $ $ $ $ $ 2 $ $ $ $ 3 5 $ $ 5 $ b What percentage of the payment represents interest and what percentage represents principal for each of the three years

Question

A B C D E Amortization schedule Loan amount to be repaid (PV) Interest rate (0) Length of loan (in years) $20 000 00 9 00  3 a  Setting up amortization table  Calculation of loan payment Formula  N A Repayment of Principal Beginning Balance Payment Interest Remaining Balance Year 1 2 3 b  Calculating   of Payment Representing Interest and Principal for Each Year Payment   Payments Representing Representing Year Interest Principal Check Total 100  3 1 2 3 Formulas 3 4 Year 1 2 3 Beginning Balance  N A  N A  N A Payment  N A UNA WNIA Interest  N A  N A  N A Repayment of Principal  N A  N A  N A Remaining Balance  N A  N A HNIA 6 7 b  Calculating   of Payment Representing Interest and Principal for Each Year Payment   Payment Representing Representing Year Interest Principal 20 1 WNIA ANIA 30 2  NIA  N A 31 3 WNA WNIA Check  Total 100  WNIA WNIA WNIA 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  1  These percentages change over time because even though the total payment is constant the amount of Interest pald each year is 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 pald 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 pald 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 pald 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  a  Complete an amortization schedule for a $20,000 loan to be repaid in equal installments at the end of each of the next three years  The interest rate is 9  compounded annually  Round all answers to the nearest cent  Beginning Balance Repayment Ending Year Payment Interest of Principal Balance 1 $ $ $ $ $ 2 $ $ $ $ 3 5 $ $ 5 $ b  What percentage of the payment represents interest and what percentage represents principal for each of the three years

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A B C D E Amortization schedule Loan amount to be repaid (PV) Interest rate (0) Length of loan (in years) $20.000.00 9.00% 3 a.

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