Joan Messineo borrowed $ 20,000 at 14% annual rate of interest to be repaid over 3 years. The loan is amortized 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 breadown of each of the three loan payments

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