Complete an amortization schedule for a $18,000 loan to paid in equal installments at the end of each of the next three years. The intered rate is 12% compounded annaly Round all answers to the nearest cent year Beginning Balance Payment Interes S 25 S 3 $ Repayment S $ Ending Dalance b. what percentage of the payment represents interest and what percentage represents prinopal for each of the three years? found all answers to two decimal places Interst Principal Year 1 Year 2 Year 3: Why do these percentages change over t 1. These percentages change over te became even thigh the total payment a constant the amount of interest paid e 11. These percentages change because even though the total payment is constant the amount of interet pad each year These percentages change over time because even though the total payment is constant the amount of interest pad each IV. These percentages change over time because even though the total payment is constant the amount of interest past These percentages do not change over time; interest and pnncipal are each a constant percentage of the total payment seeing as the reaming or outstanding balance decines. increasing as the reuing or outstanding balanie decines dedeng as the remaining or outstanding balance increases monstra as the remening outstanding balance moves Amortization schedule Loan amount to be repaid (PV) Interest rate (r) Length of loan (in years) a. Setting up amortization table Calculation of loan payment B C $18,000.00 12.00% 3 Formula #N/A D E F Year Beginning Balance Payment Interest Repayment of Principal Remaining Balance 1 2 3 b. Calculating % of Payment Representing Interest and Principal for Each Year Year 1 2 3 Payment% Representing Payment% Representing Interest Principal Check: Total= 100% Formulas Year Beginning Balance Payment Interest Repayment of Principal Remaining Balance 1 #N/A #N/A #N/A #N/A #N/A 2 #N/A #N/A #N/A #N/A #N/A 3 #N/A #N/A #N/A #N/A #N/A b. Calculating % of Payment Representing Interest and Principal for Each Year Payment% Payment % Representing Representing Year 1 Interest Principal #N/A WN/A 2 WN/A #N/A 3 #N/A WNIA Check: Total 100% WN/A #N/A