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 12% compounded annually Round all answers to the nearest cent. Beginning Balance Repayment of Principal Ending Balance Year Payment Interest 1 5 $ $ $ $ 2 $ $ $ $ 5 $ 3 $ $ 5 5 b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two deomal places Principal Interest Year 1: Year 2: Year 3: Why do these percentages change over time? L Thest 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 11. These percentages change over time because even though the total payment is constant the amount of interest paid each year la increasing at the remaining or outstanding balance in 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 there or outstanding balance in V. These percentages do not change over time, interest and principal reach 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 12% compounded annually Round all answers to the nearest cent. Beginning Balance Repayment of Principal Ending Balance Year Payment Interest 1 5 $ $ $ $ 2 $ $ $ $ 5 $ 3 $ $ 5 5 b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two deomal places Principal Interest Year 1: Year 2: Year 3: Why do these percentages change over time? L Thest 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 11. These percentages change over time because even though the total payment is constant the amount of interest paid each year la increasing at the remaining or outstanding balance in 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 there or outstanding balance in V. These percentages do not change over time, interest and principal reach a constant percentage of the total payment