Joan borrowed $15,000 at a 9% annual rate of interest to be repaid over 3 years. The loan is amoritzed into three equal, annual, end of year payments.

a. Calculate the annual, end of year loan payment

b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments

c. Exaplain why the interest portion of each payment declines with the passage of time.