X * a. Complete an amortization schedule for a $30,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the nearest cent. Beginning Balanse 30000 $ Year 1 Payment Repayment of Prindoal A-Z Interest 3000 5 Ending Balance $ $ $ 2 $ $ $ $ $ 3 $ $ $ $ $ 0.00 b. What percentage of the payment represents interest and what percentage represents principal for each of the three years Round will answers to two decimal places % Interest Year 1: Principal % % % Year 2: 4 Year 31 90 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 dedines. II. These percentages change over time because even though the total payment is constant the amount of interest paid each year is OX in 1 % Interest Year 1: % Principal % Year 2: % A-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. Check My Work Reset