This Question: 5 pls 19 of 44 (18 complete) This Test: 100 pts possible Loan amortization schedule Personal Finance Problem Joan Messineo borrowed 518,000 at a 4% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments c. Explain why the interest portion of each payment declines with the passage of time. a. The amount of the equal, annual, end-of-year loan payment is $ (Round to the nearest cent.) b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. Many financial calculators have an amortization function which makes this process easy. Once the payment is determined in step a above, you can use the AMORT function to calculate the interest paid, principal paid and ending loan balance for each payment period. You should consult your calculator instructions for specific details pertaining to your calculator What is the account balance at the beginning of year 1? (Round to the nearest cent.) Beginning of-year principal Loan Payments Interest Principal - End-of-year principal End-of-year s What is the amount of the loan payment at the end of year 1? (Round to the nearest cent.) - Beginning- of-year principal $48,000 Loan payment Payments Interest Principal End-of-year principal End-of-year What portion of the payment is applied to interest in vear 1? (Round to the nearest cent.) Click to select your answer(s). wascript:doExercise(1): TULTTI TUTTIVET UT Uutotarmy ora UF red stock has characteristics of debt since it provides a fixed periodic ... 17) ot-e 0 W 90 Loan amortization schedule Personal Finance Problem Joan Messico borrowed 548,000 amortized into three equal, annual, end-of-year payments a 4% rate ofterest to be reader 3 years. Thelonis a. Calculate the annual end-of-year loan payment b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments c. Explain why the interest portion of each payment declines with the passage of time. $48,000 S What portion of the payment is applied to interest in year 1? (Round to the nearest cent.) End-of-year Beginning- of year principal $48,000 Loan payment $17.296.73 Payments Interest Principal End-of-year principal What portion of the payment is applied to the principal in year 19 (Round to the nearest cent.) Beginning of-year principal $48,000 End-of-year Loan payment $17.296.73 Payments Interest Principal $1,920.00 $ End-of-year principal What is the principal balance at the end of year 1? (Round to the nearest cent.) Beginning of-year principal Loan Payments Interest Principal End-of-year principal End-of-year lick to select your answer(s). Aguvate Window Go Sesto act ascript:doExercise(1): TULITTO TUTTOr Urtarum OTTICO UN red stock has characteristics of debt since it provides a fixed periodic ... 17) o t eow 9 years. The bani Loan amortization schedule Personal Finance Problem Joan Messineo borrowed 18.000 amortized into three equal, annual, end of year payments a 4% multate of interest to be repard a. Calculate the annual, end of year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments c. Explain why the interest portion of each payment declines with the passage of time Beginning Payments of year Loan Endof-year End of year principal payment interest Principal principal $48,000 $17,296.73 $1,920.00 $15,376.73 What is the account balance at the beginning of year 2? (Round to the nearest cent.) End-of-year Beginning of-year principal $48,000 Loan payment $17.296.73 Payments Interest Principal $1,920.00 $15,376.73 End-of-year principal $32,623 27 What is the amount of the loan payment at the end of year 2? (Round to the nearest cent.) Payments End-of-year Loan End-of-year Beginning- of-year principal $48,000 $32,623.27 Interest $1,920.00 Principal $15,376.73 principal $32,623 27 $17,296.73 S What portion of the payment is applied to interest in vear 2? (Round to the nearest cent. ACTIVE Click to select your answer(s). Loan amortization schedule Person Finance Problem Joan Messico borrowed 8,000 a 4% annual rate of interest to be paid we amortized into three equal, annual, end of year payments a. Calculate the annual, end-of-year loan payment b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments c. Explain why the interest portion of each payment declines with the passage of time vean Theloni 2 $32,623 27 What portion of the payment is applied to interest in year 2? (Round to the nearest cent.) End-of-year Beginning of-year principal $18,000 $32,623.27 Loan payment $17.296.73 $17.296.73 Payments Interest Principal $1,920.00 $15,376.73 End of year principal $32,623.27 What portion of the payment is applied to the principal in year 2? (Round to the nearest cent.) End-of-year Beginning- of-year principal $48,000 $32,623.27 Loan payment $17.296.73 $17.296.73 Payments Interest Principal $1,920.00 $15,376.73 $1,304.93 $. End-of-year principal $32,623.27 What is the principal balance at the end of year 2? (Round to the nearest cent.) Beginning Payments "ick to select your answer(s). ACT borrowed 10,000 a 1% minute of Wrest to be ready For year payments. a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payment c. Explain why the interest portion of each payment declines with the passage of time What is the principal balance at the end of year 2? (Round to the nearest cont.) as the End of year Loan Beginning of year principal $18,000 $32,623 27 payment $17.296.73 $17.296.73 Payments Interest Principal $1,920.00 $15,376.73 $1,304.93 $15.991 80 End of year principal $32,623 27 What is the account balance at the beginning of year 3? (Round to the nearest cont.) End-of-year Beginning of-year principal $48,000 $32,623.27 Loan payment $17,296.73 $17.296.73 Payments Interest Principal $1,920.00 $15,376.73 $1,304.93 515,991.80 End-of-year principal $32,623.27 $16,631.47 $ What is the amount of the loan payment at the end of year 3? (Round to the nearest cent.) Beginning- of-year principal Loan payment Payments Interest Principal End-of-year principal End-of-year Click to select your answer(s). - Corrie TTV Darco Loan amortization schedule Personal Finance Problem Joan Messico borrowed $18,000 at a 1% annual rate of interest to be repadowyearselon amortized into three equal, annual, end-of-year payments. a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments c. Explain why the interest portion of each payment declines with the passage of time. End of year Beginning of-year principal $48,000 $32,623.27 $16,631.47 Loan payment $17.296.73 $17.296.73 Payments Interest Principal 51,920.00 $1,920.00 $15.376.73 $15,376.73 $1,304.93 515,991.80 End-of-year principal $32,623 27 $16,631.47 What portion of the payment is applied to interest in year 3? (Round to the nearest cent.) Beginning of year Payments Loan End-of-year End-of-year principal payment Interest Principal principal $48,000 $17,296.73 $1,920.00 $15,376.73 $32,623.27 $32,623.27 $17.296.73 $1,304.93 $15,991.80 $16,631.47 $16,631.47 $17.296.73 $ Vhat portion of the payment is applied to the principal in year 3? (Round to the nearest cent.) Beginning Payments of-year Loan End-of-year End-of-year principal payment Interest Principal principal ck to select your answer(s). Loan amortization schedule Personal Finance Problem amortized into three equal, annual, end-of-year payments. Joan Messineo borrowed 518,000 at a 4% annual rate of interest to be repaid over 3 years. The loan is a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments c. Explain why the interest portion of each payment declines with the passage of time End-of-year Beginning of year principal $48,000 $32,623.27 $16,631.47 Loan payment $17,296.73 $17,296.73 $17,296.73 Payments Interest Principal $1,920.00 $15,376.73 $1,304.93 $15,991.80 $665.26 SL End of year principal $32,623.27 $16,631.47 What is the principal balance at the end of year 3? (Round to the newest cent.) End-of-year Beginning - of year principal 548,000 $32,623.27 $16,631.47 Loan payment $17.296.73 $17.296.73 $17.296.73 Payments Interest Principal $1,920.00 $15,376.73 $1,304.93 $15,991.80 $665.26 $16,63147 - End-of-year principal $32,623 27 $16,631.47 c. Explain why the interest portion of each payment declines with the passage of time. (Select the best answer below.) O A. Through annual end-of-the-year payments, the principal balance of the loan is declining, causing more interest to be accrued on the balance B. Through annual end-of-the-year payments, the interest balance of the loan is declining, causing less principal to be accrued on the balance. O Click to select your answer(s)