Ly. Amortizaton schedule Open spreadsheet a. Complete an amortization schedule for a $32,000 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. Beginning Balance Ending Year Payment Repayment of Principal Interest Balance 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. % Interest % Principal Year 1: Year 2: Year 3: C. Why do these percentages change over time? 1. 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 TV. These percentages change over time hecause even though the total navmant is constant the amount of interest nad each vaar is increasing the ULULUI screuule Beginning Balance Ending Payment Interest Repayment of Principal 1 $ Balance $ 2 $ $ 3 $ What percentage of the payment represents Interest and what percentage represents principal for each of the three years? Round all answers Elmal places. % Interest % Principal ar 1: ar 2: ear 3: Why do these percentages change over time? 1. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining a 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 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 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 a 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