Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $40,000 at a 7% 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 breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. a. The amount of the equal, annual, end-of-year loan payment is $. (Round to the nearest cent.) b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. Many financial calculators have an amortization function which makes this process easy. Once the payment is determined in step a above, you can use the AMORT function to calculate the interest paid, principal paid and ending loan balance for each payment period. You should consult your calculator instructions for specific details pertaining to your calculator. What is the account balance at the beginning of year 1? (Round to the nearest cent.) Beginning of-year principal Loan payment Payments Interest Principal End-of-year principal Year 1 What is the amount of the loan payment at the end of year 1? (Round to the nearest cent.) Loan Beginning of-year principal $40,000 Payments Interest Principal Year End-of-year principal payment