Complete an amortization schedule for a $40,000 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 Repayment

1.

2.

3.

Ending Year Balance

1.

2.

3.

Payment Interest of Principal Balance

1.

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.

Year 1: Year 2: Year 3:

% Interest % Interest % Interest

% Principal % Principal % Principal