M10-20 (Algo) (Supplement 10D) Using an Online Calculator to Produce and Interpret an Amortization Schedule [LO 10-S4]

Access an online loan calculator with annual payments, such as the one at mycalculators.com, to produce an amortization schedule for Welton Corporations installment note that has original principal of $14,000, interest of 6 percent compounded annually, and a term of 3 years. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Required:

(a) What is the annual payment? (b) Of this amount, how much represents interest in year 1? (c) How much principal is included in the year 1 payment? (d) How much interest is included in the year 2 payment? (e) Over time, has the interest become a smaller or larger component of the annual payment?