Consider a $$20,000$ loan to be repaid in equal installments at the end of each of the next $5$ years. The interest rate is $11\%.$

Set up an amortization schedule for the loan. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter $"0".$

Year Payment Repayment Interest Repayment of Principal Balance

$1$ $

$

$

$

$2$ $

$

$

$

$3$ $

$

$

$

$4$ $

$

$

$

$5$ $

$

$

$

Total $

$

$

How large must each annual payment be if the loan is for $$40,000?$ Assume that the interest rate remains at $11\%$ and that the loan is still paid off over $5$ years. Do not round intermediate calculations. Round your answer to the nearest cent.

$

How large must each payment be if the loan is for $$40,000,$ the interest rate is $11\%,$ and the loan is paid off in equal installments at the end of each of the next $10$ years? This loan is for the same amount as the loan in part b$,$ but the payments are spread out over twice as many periods. Do not round intermediate calculations. Round your answer to the nearest cent.

$

Why are these payments not half as large as the payments on the loan in part b$?$

I. Because the payments are spread out over a shorter time period, more interest is paid on the loan, which lowers the amount of each payment.

II$.$ Because the payments are spread out over a longer time period, more interest must be paid on the loan, which raises the amount of each payment.

III. Because the payments are spread out over a longer time period, more principal must be paid on the loan, which raises the amount of each payment.

IV$.$ Because the payments are spread out over a longer time period, less interest is paid on the loan, which raises the amount of each payment.

V$.$ Because the payments are spread out over a longer time period, less interest is paid on the loan, which lowers the amount of each payment.

$-$Select$-$