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 $21,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. Round all answers to the nearest cent. Year 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? Round all answers to two decimal places. % Interest %Principal Year 1: % Year 2: Year 3: % % c. 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 c. 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. 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. ck My Work Reset Problem A 1 Amortization schedule 2 3 Loan amount to be repaid (PV) 4 Interest rate (r) 5 Length of loan (in years) 6 7 a. Setting up amortization table 8 Calculation of loan payment 9 B $21,000.00 12.00% 3 Formula #N/A D E F 10 212319 Year 1 Beginning Balance Payment Interest Repayment of Principal Remaining Balance 14 2 3 15 b. Calculating % of Payment Representing Interest and Principal for Each Year 16 Year 17 18 19 6723 20 21 Formulas 22 23 24 25 26 Payment% Representing Interest Payment % Representing Principal Check: Total 100% 1223 Year Beginning Balance Payment Interest Repayment of Principal Remaining Balance #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A N/A #N/A #N/A #N/A #N/A N/A b. Calculating % of Payment Representing Interest and Principal for Each Year Payment% Representing Interest Payment% Representing Principal 6661295 20 21 Formulas 23 24 25 26 222222 Year 1 2 3 Check: Total= 100% Repayment of Year Beginning Balance Payment Interest Principal Remaining Balance 1 #N/A #N/A #N/A #N/A #N/A 2 AN/A #N/A N/A WNIA WN/A 3 #N/A #N/A #N/A #N/A N/A 28 Year 27 b. Calculating % of Payment Representing Interest and Principal for Each Year Payment % Representing Payment% Representing Check: Total Interest Principal 100% 29 1 #N/A #N/A #N/A 30 2 #N/A #N/A #N/A 31 3 #N/A #N/A #N/A 32 33 34 35