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Loan amortization schedule Joan Messineo borrowed $16,000 at a 11% annual rate of interest to be repaid over 3 years. The loan is amortized into

Loan amortization schedule

Joan Messineo borrowed $16,000 at a 11% 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.

NOTE: Please use and submit an Excel spreadsheet to show the computations for the results.

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