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Amortization schedule Set up an amortization schedule for a $13,000

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Amortization schedule Set up an amortization schedule for
a $13,000 loan to be repaid in equal installments at the
end of each of the next 3 years. The interest rate is 9%
compounded annually. Round all answers to the nearest
cent.
Year Begining balance Payment remaining
Balance
1
2
3
What percentage of the payment represents interest and
what percentage represents principal for each of the 3
years? Round all answers to two decimal places.
% Interest % Principal
Year 1:
Year 2:
Year 3:
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 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 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 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 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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Amortization schedule Set up an amortization schedule for a $13,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 9% compounded annually. Round all answers to the nearest cent. Year Begining balance Payment remaining Balance 1 2 3 What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Round all answers to two decimal places. % Interest % Principal Year 1: Year 2: Year 3: Why do these percentages change over time? These percentages change over time because even though the total p ...
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