a. Complete an amortization schedule for a $38,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 8% compounded annually. Round all answers to the nearest cent. Beginning Balance Year Payment Repayment of Prindpal Ending Balance Interest $ $ $ $ $ 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: 9% % Year 3: 96 % 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 bald each year is dedining as the remaining or outstanding balance declines. Excel template Singid Ribbon Home Data View me wit you want to do ting Com Artal 10 B General 04 Amortion schei SM Loan amount berpad Irene than in a s. Be warto Colla For UN of Proper Ve 1 11 3 Ca of Payment Representa un Padillach your Catal 10 Excel template Saved Fe Home Insert formulas Data Review View Help Editing Tell me what you want to do beca General Arial 10 B HAY 04 0 Interest Principal 100% 16 12 18 10 30 21 Formule Year 1 2 3 Remaining balance Year 1 Payment INI Interest WA 23 24 Beginning balance NA NA NA Repayment of Principal ONIA UNIA UNIA WNIA WNA M > b. Calculating of Payment Representing Interest and Principal for Ench Your Payment Payment Representing Representing Year Interest Principal 1 WA NA UA Check Total 100% UNA RE WNA Structure Action The data on has been collect the Microsoft Exceline di below. Open the spreadsheet and perform the required analysis tower the questione con D Open dat Con amortion schedule for a loan to be repaid in installments at the end of each of the next three years. The interest rate is compounded wer to the cont Tegin Bapa Ending Ver Ba 1 1 3 1 1 b. What percent of the representerest and what percentagens Brincipal for each of the three years lowers to two decal placet. Primo Year !! ar Why do these deres dinge verlie? These percent change time because even though the contestar desting as the balance de 1. These person we time been though the miscott the worst podach year her the mining i halines III. These time though the totalment is not pod ad eas the remaining wala na IV. The percentage unge www time be though the totalment is the amount of deather in the remaining or outstanding tatance in The stages de change time and pachant of the D F B E G c Amortization schedule $38,000.00 800% 3 3. Loan amount to be repaid (PV) 4 Interest rate 5 Length of loan (in years) 6 3. Setting up amortization table 8 Calculation of loan payment 9 Formula WA F Payment Beginning Balance $38.000.000,00 Interest Repayment of Principal 10 11 12 13 Remaining Balance Year 1 2 3 15 b. Calculating of Payment Representing Interest and Principal for Each Year Payment Payment Representing Representing Year Interest Principal 17 1 10 2 19 3 Check Total 100% 21 Formulas Interest WNIA ANIA NA Repayment of Principal WNIA NIA WNIA Remaining Balance WNIA NNIA WNIA You Beginning Balance Payment 1 WNIA NA 2 UNIA WNIA ANIA NA 77 b. Citing of Payment Representing Interest and Principal for Each Your Payment Payment Representing Your Representing res Principal 1 30 2 NNA NIA 3 ANJA ANIA - MNA Check. Total 100% NA WNA WNIA