What percentage of the payment represents principal payment

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Reference no: EM131448551

a) Set up an amortization schedule for a $12,000 loan to be repaid in equal instalments at the end of each of the next 3 years. The interest rate is 3 percent, compounded annually.

b) What percentage of the payment represents interest payment and what percentage of the payment represents principal payment for each of the 3 years? Why do these percentages change over time?

Reference no: EM131448551

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