Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $46,000 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 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 cont.) 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 specifie details pertaining to your calculator What is the account balance at the beginning of your 1? (Round to the nearest cent.) Beginning of year principal Loan payment End-of-year Payments Interest Principal End-of-year principal What is the amount of the loan payment at the end of year 1? (Round to the nearest cont.) Beginning of year principal $46,000 End-of-year Payments interest Principal Loan payment SL End-of-year principal What portion of the payment is applied to interest in your 12 (Round to the nearest cont.) Click to select your answers). Loan amortization schedule Personal Finance Problem amortized into three equal, annual end-of-year payments Joan Mossino borrowed $46,000 ata 4% annual rate of interest to be repaid over 3 years. The loan is a. Calculate the annual and 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 What portion of the payment is applied to interest in year 1? (Round to the nearest cont.) Payments - End-ofyear Beginning of year principal 546,000 Loan payment $16,576.03 Interest Principal End-of-year principal What portion of the payment is applied to the principal in year 17 (Round to the nearest cent) End of year Beginning of year principal $46,000 Loan payment $16,576.03 Payments interest Principal $1,340.00 S End-of-year principal What is the principal balance at the end of year 17 (Round to the nearest cent) fodules Beginning of year principal $46,000 Tools End-of-year > Loan payment $16.575.03 End-ofyear principal Payments Interest Principal 51.840.00 $14.736.03 Click to select your answers). Loan amortization schedule Personal Finance Problem Joan Messico borrowed $46,000 of 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 tree loan payments c. Explain why the interest portion of each payment declines with the passage of time TUS What is the account balance at the beginning of year 27 (Round to the nearest cent) End-of-year Beginning of year principal $46,000 Loan payment $16,576.63 Payments Interest Principal $1,840.00 $14,736.03 End-of-year principal $31,263.97 ibrary What is the amount of the loan payment at the end of year 2? (Round to the nearest cont.) ulator - End-of-year Beginning of year principal S05.000 $31.263.07 urces Payments interest Principal $1,840.00 $14.736 03 Loan payment $16.576 03 SC End-of-year principal 31.263.97 ty Modules What portion of the payment is applied to interest in year 27 Round to the nearest cent) on Tools Beginning of year End-of-year rincial Click to select your answers Loan ament Payments interest Principal End of year rinciaal Joan Mossino borrowed $40,000 at 4% annual rate of interest to be paid over 3 years. The loan is Loan amortization schedule Personal Finance Problem amortured into three que annual end of your payments a. Calculate the annual, and 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 Beginning Payments of year Loan End-of-year End-of-year principal payment interest Principal principal $46,000 $16,576.03 $1.840.00 $14,736-03 $31,263.97 $31,263.97 $16.578.03 SI What portion of the payment is applied to the principal in year 2? (Round to the nearest cont.) brary End-of-year Beginning of year principal $46,000 $31.203.07 Payments interest Principal $1,340.00 $14,736 03 $1,250.56 Loan payment $16,576 03 $16,57603 End-of-year principal $31.263.97 water What is the principal balance at the end of year 27 (Round to the newest cont) ty Modules Payments End-of-year on Tools Beginning of year principal $46,000 $31.263.97 Loan payment $16.576 03 $16.576 03 interest $1,840.00 $1,250 56 End-of-year principal $31.263.97 Principal Principal $14,73603 $15,325 47 Click to select your answers). Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $46,000 at a 4% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, ond-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. What is the account balance at the beginning of year 3? (Round to the nearest cont.) End-of-year Beginning of-year principal $46,000 $31,263.97 S Loan payment $16,576.03 $16,576.03 Payments Interest Principal $1,840.00 $14.736,03 $1,250.56 $15,325.47 End-of-year principal $31,263.97 What is the amount of the loan payment at the end of year 3? (Round to the nearest cent) Payments End-of-year Beginning of-year principal $46,000 $31,263.97 $15,038.50 Loan payment $16,576.03 $16,576.03 $ Interest $1,840.00 $1,250.56 Principal $14.738.03 $15,325 47 - End-of-year principal $31,263.97 $15,938.50 What portion of the payment is applied to interest in year 3? (Round to the nearest cent.) Beginning Pavments Click to select your answer(s). Loan amortization schedule Personal Finance Problem amortized into three equal, annual, and of year payments Joan Mossino borrowed $45.000 a 4% annual rate of interest to be read over 3 years. The loan is 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 3 $15.938.50 $ actid What portion of the payment is applied to interest in year 3? (Round to the nearest cont.) $45 Beginning of-y Payments of year Loan End-of year shos End-of-year principal payment Interest Principal principal $46,000 $16,576.03 $1,840.00 $14,736.03 $31,263.97 : See $31,263.97 $16,576.03 $20 56 515 325 47 $15.938.50 $15.938.50 $16,576.03 Loat bort What portion of the payment is applied to the principal in year 3? (Round to the nearest cont.) Calc prin Beginning Payments of year Loan End of year End-of-year principal payment Interest Principal principal See $46,000 $16,576.03 $1,840.00 $14,736.03 $31,263.97 $31,263.97 $16,576.03 $1,250.56 $15,325,47 $15,938.50 $15,938.50 $16,526.03 $63754 What is the principal balance at the end of year 3? (Round to the nearest cent.) nex Cick to select your answers). Loan amortization schedule Personal Finance Problem amortired into three equal, annual end-of-year payments. Joan Messico borrowed $46,000 at 4% annual rate of interest to be paid over 3 years. The loan is 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 lime $46,000 $16,576.03 $1,840.00 $14,736.03 $31,263.97 $31,263.97 $16,576.03 $1,250.56 $15,325.47 $15,938.50 $15,938.50 $16,576.03 $637 54 of-y hol What is the principal balance at the end of year 3? (Round to the nearest cent) Gee End-of-year Beginning- of-year principal $46,000 $31,263.97 $15,938.50 Loan payment $16,576.03 $16,576.03 $16,576.03 Payments Interest Principal $1,840,00 $14.738.03 $1,250.56 $15,325.47 563754 $15.938.49 End-of-year principal $31.263.97 $15,938.50 oat sort Cale rin c. Explain why the interest portion of each payment declines with the passage of time. (Select the best answer below) O O O O A Through annual end of the year payments, the interest balance of the loan is declining, causing less principal to be accrued on the balance B. Through annual end of the year payments, the principal balance of the loan is declining, causing less interest to be accrued on the balance C. Through annual end-of-the-year paymhts, the principal balance of the loan is declining, causing more interest to be accrued on the balance D. Through annual end of the year payments, the principal balance of the loan is increasing, causing less interest to be accrued on the balance Click to select your answers) bt