a. Complete an amortization schedule for a $33,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent.BeginningRepaymentEndingYearBalancePayment! nterestof Principal Balance 1$ fill in the blank 2$ fill in the blank 3$ fill in the blank 4$ fill in the blank 5$ fill in the blank 62$ fill in the blank 7$ fill in the blank 8$ fill in the blank 9$ fill in the blank 10$ fill in the blank 113$ fill in the blank 12$ fill in the blank 13$ fill in the blank 14$ fill in the blank 15$ fill in the blank 16b. 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:fill in the blank 17% fill in the blank 18% Year 2:fill in the blank 19% fill in the blank 20% Year 3:fill in the blank 21% fill in the blank 22%c. Why do these percentages change over time?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.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.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.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.
a. Complete an amortization schedule for a $33,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 9% compounded annually. Round all answers to the nearest cent.BeginningRepaymentEndingYearBalancePayment! nterestof Principal Balance 1$ fill in the blank 2$ fill in the blank 3$ fill in the blank 4$ fill in the blank 5$ fill in the blank 62$ fill in the blank 7$ fill in the blank 8$ fill in the blank 9$ fill in the blank 10$ fill in the blank 113$ fill in the blank 12$ fill in the blank 13$ fill in the blank 14$ fill in the blank 15$ fill in the blank 16b. 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:fill in the blank 17% fill in the blank 18% Year 2:fill in the blank 19% fill in the blank 20% Year 3:fill in the blank 21% fill in the blank 22%c. Why do these percentages change over time?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.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.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.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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:a. Complete an amortization schedule for a $33,000
loan to be repaid in equal installments at the end of
each of the next three years. The interest rate is 9%
compounded annually. Round all answers to the
nearest
cent BeginningRepaymentEndingYearBalancePayment
nterestof Principal Balance 1$ fill in the blank 2$ fill in the
blank 3$ fill in the blank 4$ fill in the blank 5$ fill in the
blank 62$ fill in the blank 7$ fill in the blank 8$ fill in the
blank 9$ fill in the blank 10$ fill in the blank 113$ fill in
the blank 12$ fill in the blank 13$ fill in the blank 14$ fill
in the blank 15$ fill in the blank 16b. 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:fill in the blank 17% fill in the
blank 18% Year 2:fill in the blank 19% fill in the blank 20%
Year 3:fill in the blank 21% fill in the blank 22%c. Why do
these percentages change over time?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.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.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.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.
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