are Value): Not Answered Check My Work ( remaining) eBook You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan will have an 11% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not found intermediate calculations. Round your answer to the nearest cent. What is the most expensive car you can afford if you firfance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. u search this course mework eBook a. Complete an amortization schedule for a $31,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. If an amount is zero, enter "o". Do not round intermediate calculations Round your answers to the nearest cent. Beginning Balance Repayment Ending Payment Interest of Principal Balance b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: Year 2: Year 3: Why do these percentages change over time? I. 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. II. 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. 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 the remaining or outstanding balance increases. These errentanec in nnt channe ner time. Interest and nrinrinal are prh a constant nerrentana nf the total aument b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate calculations. Round your answers to two decimal places. % Interest % Principal Year 1: Year 2: Year 3: 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 paid each year is declining as the remaining or outstanding balance declines. IL. 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. 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 the remaining or outstanding balance increases. V. These percentages do not change over time; interest and principal are cach a constant percentage of the total payment. Check My Work (1 remaining) mework x ment: Week 3 Homework Assignment Score 5.555 Save Submit Assignment for Grading as Problem 6.11 (Default Risk Premium) Question 1 of 1 Check My Work (1 remaining) Rool Oo oo A company's 5-year bonds are yielding 7.1% per year. Treasury bonds with the same maturity are yielding 5.6% per year, and the real risk-free rate (r) is 2.40%. The average inflation premium is 2.80%, and the maturity risk premium is estimated to be 0.1 x (t- 1)%, where t = number of years to maturity. If the liquidity premium is 1.05%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places