Why do the percentages change over time

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Reference no: EM133983319

Problem

1) Complete an amortization schedule for a $40,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 6% compounded annually. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 2 40,000 $ fill in the blank 3 14,906.25 $ fill in the blank 4 2400 $ fill in the blank 5 12,506.25 $ fill in the blank 6 27,493.75 2 $ fill in the blank 7 27,493.75 $ fill in the blank 8 14,906.25 $ fill in the blank 9 1,649.63 $ fill in the blank 10 13,256.62 $ fill in the blank 11 14,237.13 3 $ fill in the blank 12 14,237.13 $ fill in the blank 13 14,906.25 $ fill in the blank 14 854.23 $ fill in the blank 15 14,052.02 $ fill in the blank 16 185.11

2) What percentage of the payment represents interest and what percentage represents principal for each of the three years? % Interest % Principal Year 1: fill in the blank 17 16.11 % fill in the blank 18 83.89 % Year 2: fill in the blank 19 11.05 % fill in the blank 20 88.95 % Year 3: fill in the blank 21 5.73 % fill in the blank 22 94.27 %. Get the instant assignment help.

3) Why do these percentages change over time?

Reference no: EM133983319

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