Excel Online Structured Activity: Amortization schedule The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. Complete an amortization schedule for a $17,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 6% compounded annually. Round all answers to the nearest cent. Year Beginning Balance 1 $ 2 $ 3 $ Payment $ $ Repayment Interest of Principal Ending Balance 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: % % Year 3: % % c. 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. V. These percentages do not change over time; interest and principal are each a constant percentage of the total payment. Check My Work Reset Problem A 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 123456789 B $17,000.00 6.00% 3 Formula #N/A D E LL F G 14 212315 10 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 Payment % Representing Interest Payment % Representing Principal 123 69 16 17 18 19 20 Check: Total = 100% Formulas Repayment of Year 1 Beginning Balance Payment Interest Principal #N/A #N/A #N/A #N/A 23 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 23 24 25 26 27 12 222222 b. Calculating % of Payment Representing Interest and Principal for Each Year Payment % Representing Payment % Representing Check: Total = 28 29 31 56 34 35 36 223333333 Year Interest Principal 100% 1 #N/A #N/A #N/A 30 2 #N/A #N/A #N/A 3 #N/A #N/A #N/A Remaining Balance #N/A #N/A #N/A