Question 7 AMORTIZATION SCHEDULE A. Joan Williams borrowed $15000 at 14% annual rate of interest to be repaid over three years. The loan is repaid over three equal end of year payments. i.) Calculate the annual end of year payments ii) Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments B. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Why do these percentages change overtime? [8marks] Question 3 RETIREMENT SAVINGS AND PLANNING Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president of research, Jill Moran. Ms. Moran by contract will retire at the end of exactly 12 years. Upon retirement, she is entitled to receive an annual end-of-year payment of $42,000 for exactly 20 years. If she dies prior to the end of the 20 -year period, the annual payments will pass to her heirs. During the 12-year "accumulation period" Sunrise wishes to fund the annuity by making equal annual end-of-year deposits into an account earning 9% interest. Once the 20 -year "distribution period" begins, Sunrise plans to move the accumulated monies into an account earning a guaranteed 12% per year. At the end of the distribution period, the account balance will Question 7 AMORTIZATION SCHEDULE A. Joan Williams borrowed $15000 at 14% annual rate of interest to be repaid over three years. The loan is repaid over three equal end of year payments. i.) Calculate the annual end of year payments ii) Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments B. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Why do these percentages change overtime? [8marks] Question 3 RETIREMENT SAVINGS AND PLANNING Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president of research, Jill Moran. Ms. Moran by contract will retire at the end of exactly 12 years. Upon retirement, she is entitled to receive an annual end-of-year payment of $42,000 for exactly 20 years. If she dies prior to the end of the 20 -year period, the annual payments will pass to her heirs. During the 12-year "accumulation period" Sunrise wishes to fund the annuity by making equal annual end-of-year deposits into an account earning 9% interest. Once the 20 -year "distribution period" begins, Sunrise plans to move the accumulated monies into an account earning a guaranteed 12% per year. At the end of the distribution period, the account balance will