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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

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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. men Open spreadsheet Complete an amortization schedule for a 548,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 996 compounded annually. Round all answers to the nearest cent. Beginning Balonce Year 1 Payment Repayment of Prical Ending Balance Interest 5 5 $ 5 $ $ $ 5 $ $ $ 5 5 5 $ t. 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 Principal 4 Yat 23 Why do these percentages change ever mu? The percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the main 1 > > > 2 $ $ $ $ $ $ $ $ $ $ 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 Year 13 % Principal 96 1% % Year 24 % % Year 3: 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. 11. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing the remaining or outstanding balance declines 111. These percentages change over time because even though the total payment is constant the amount of interest and each year is declining at 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. Theve percentages do not change over time; interest and principal are each a constant percentage of the total payment

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