Loan amount to be repaid PV) Interest rate Length of ban in years) $11,000.00 120096 Formula a. Setting up amortization table Calculation of lan payment Beginning Balance Repayment of Principal Payne Interest Remaining Balance 15 b. Calculating % of Payment Representing Interest and Principal for Each Year Paymer Payment % Representing Check: Total Principal 100% 21 Formulas Begin ance Payment Remaining Balance Interest NIA #NIA #N/A Repayment of Principal #NIA #N/A #NA NA #NA 6. Calculating % of Payment Representing Interest and Principal for Each Year Payment % Payment % Representing Representing Check: Total = 100% latetesi #NA #NA #NIA #N/A #NA =NIA #NA ENA Sheet Video Excel Online Structured Activity: Amortization schedule The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. open spreadshe a. Complete an amortization schedule for a $11,000 loan to be repaid in equal installments at the end of each of the next three years, The interest rate is 12% compounded annually. Round all answers to the nearest cent. Repayment Ending Beginning Balance Year Payment Interest of Principal Balance 1 $ 2 $ 3 $ b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. Back Next SAMSUNG b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. % Principal % Interest Year 1: Year 2: Year 3: c. Why do these percentages change over time? I. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance declines. III. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance increases. IV. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance increases. V. These percentages do not change over time; interest and principal are each a constant percentage of the total payment. Back Next SAMSUNG