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. HII X Open spreadsheet 2. Complete an amortization schedule for a $29,000 loan to be repaid in equal instaliments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the nearest cent. Ending Beginning Balance Repayment of Principal Year Payment Interest Balance $ 5 5 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: % 10 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 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 E 1 = 2 General B1 D E F A Amortization schedule 2 3 Loan amount to be repaid (PV) 4 Interest rate) Length of loan (in years) 6 a. Setting up amortization table 8 Calculation of loan payment 9 $29,000.00 10.00% 3 Formula NA Interest Repayment of Principal Renseining Balance 10 Year 11 Beginning Balance Payment 1 12 2 13 3 14 15 b. Calculating of Payment Representing Interest and Principal for Each Year Payment 10 Payment Year Representing 12 Reactie laterest hincipal TA 19 20 Check Total 100% Sheet1 ch 21 Formulas Interest MN/A WNA Repayment of Principal #N/A NA #NA Remaining Balance #NA WNA NA 22 Year Beginning Balance Payment 23 1 #NA 24 #N/A 2 WNA 25 #NA 3 NA 26 WNA 27 b. Calculating Sol Payment Representing Interest and Principal for Each Year Payment Payment 26 Representing Yra 29 Representing Interest Principal 30 ANIA WNIA 31 UNIA #NIA WNIA WNIA 3 NIE Check Total = 100% N/A #N/A F WNIA 32