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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

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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 HT Open spreadsheet a. Complete an amortization schedule for a $10,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate 15 % compounded annually. Round at answers to the nearest cent. Beginning Balance Repayment of Princioal Ending Balance Year Bayment Interest 1 5 $ $ $ $ $ 2 5 $ $ 3 $ $ 5 b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round answers to two decimal places. Interest Principal Year 1 Year 2: 14 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 interested each year is dedining 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 Pald 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 These percentages do not change over time; interest and principal are each a constant percentage of the total payment. All CHA BH - G 1 Amortization schedule $10,000.00 GOON 3 2. Loan amount to be repard PV) 4 Intereste 5 Length of loan in years) 7 Setting up amortization table Calculation of loan payment Form ANA 9 Interest Repayment of Principal Remaining Bang Year Beginning Balance Payment 11 12 2 13 3 14 15 b. Calculating of Payment Representing Interest and Principal for Each Year Payment Payment Representing Representing 16 Year Interest Principal 17 1 2 19 3 Check Total 100 21 Formulas Year Payment ANA 22 23 24 25 Beginning Board WNIA WNIA WNIA Interest NA NU ANA Repayment of Principal NA NA UNA Remaining Balance NA ANA WNIA NA 2 3 w . Sheet1 + Ger

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