4)Mario Morales borrowed $ 15,000 at an interest rate of 14% to be paid in 3...

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4)Mario Morales borrowed $ 15,000 at an interest rate of 14% tobe paid in 3 years. The loan must be repaid in three equal paymentsat the end of each year.
a)Calculate the annual payment to be made.
b)Prepare an amortization table that shows the principal andinterest payment, as well as the loan balance for each year.
c)Explain why the interest portion of each payment decreasesover time.

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aAnnual end of year loan payment Loan Amount P 15000 Annual Interest Rate r 14 per year Loan Period 3 Years Annual Loan Payment P x r 1r n 1 r n 1 15000 x 014 x 1 See Answer

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4)Mario Morales borrowed $ 15,000 at an interest rate of 14% tobe paid in 3 years. The loan must be repaid in three equal paymentsat the end of each year.a)Calculate the annual payment to be made.b)Prepare an amortization table that shows the principal andinterest payment, as well as the loan balance for each year.c)Explain why the interest portion of each payment decreasesover time.