Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $43,000 at a 4% 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.) Number of years to provide a given return in the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial amount $1,000 Annual cash flow $250 Rate of return 11% The number of investment years, n, is years. (Round to two decimal places.) Funding your retirement Emily Jacob is 45 years old and has saved nothing for retirement. Fortunately, she just inherited $77,000. Emily plans to put a large portion of that money into an investment account earning a(n) 11% return. She will let the money accumulate for 20 years, when she will be ready to retire. She would like to deposit enough money today so she could begin making withdrawals of $50,000 per year starting at age 66 (21 years from now) and continuing for 24 additional years, when she will make her last withdrawal at age 90. Whatever remains from her inheritance, Emily will spend on a shopping spree. Emily will continue to earn 11% on money in her investment account during her retirement years, and she wants the balance of her retirement account to be $0 after her withdrawal on her ninetieth birthday. a. How much money must Emily set aside now to achieve that goal? It may be helpful to construct a timeline to visualize the details of this problem. b. Emily realizes that once she retires she will want to have less risky investments that will earn a slightly lower rate of return, 8% rather than 11%. If Emily can earn 11% on her investments from now until age 65, but she earns just 8% on her investments from age 65 to 90, how much money does she need to set aside today to achieve her goal? c. Suppose Emily puts all of the $77,000 that she inherited into the account earning 11%. As in part b, she will earn only a(n) 8% return on her investements after age 65. If Emily withdraws $50,000 as planned on each birthday from age 65 to age 90, how much will be left in her account for her heirs after her last withdrawal? a. The amount Emily must set aside now is $ (Round to the nearest cent.) Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $43,000 at a 4% 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.) Number of years to provide a given return in the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial amount $1,000 Annual cash flow $250 Rate of return 11% The number of investment years, n, is years. (Round to two decimal places.) Funding your retirement Emily Jacob is 45 years old and has saved nothing for retirement. Fortunately, she just inherited $77,000. Emily plans to put a large portion of that money into an investment account earning a(n) 11% return. She will let the money accumulate for 20 years, when she will be ready to retire. She would like to deposit enough money today so she could begin making withdrawals of $50,000 per year starting at age 66 (21 years from now) and continuing for 24 additional years, when she will make her last withdrawal at age 90. Whatever remains from her inheritance, Emily will spend on a shopping spree. Emily will continue to earn 11% on money in her investment account during her retirement years, and she wants the balance of her retirement account to be $0 after her withdrawal on her ninetieth birthday. a. How much money must Emily set aside now to achieve that goal? It may be helpful to construct a timeline to visualize the details of this problem. b. Emily realizes that once she retires she will want to have less risky investments that will earn a slightly lower rate of return, 8% rather than 11%. If Emily can earn 11% on her investments from now until age 65, but she earns just 8% on her investments from age 65 to 90, how much money does she need to set aside today to achieve her goal? c. Suppose Emily puts all of the $77,000 that she inherited into the account earning 11%. As in part b, she will earn only a(n) 8% return on her investements after age 65. If Emily withdraws $50,000 as planned on each birthday from age 65 to age 90, how much will be left in her account for her heirs after her last withdrawal? a. The amount Emily must set aside now is $ (Round to the nearest cent.)