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a. Complete an amortization schedule for a $31,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent. Year 1 2 3 Beginning Balance $ 31000 21450.90 % Interest % Payment $ % 12029 % 12029 12029 Interest $ % 2480 11138 891.04 11138 0 b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. % Principal % 1716.08 % Repayment of Principal $ 9549.04 10312.96 Remaining Balance Year 1: Year 2: Year 3: Why do these percentages change over time? I. 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. II. 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. $ 21450.90 11138 III. 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. IV. 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 nercentage of the total navment

1. Complete an amortization schedule for a $31,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually. If an amount is zero, enter " 0 ". Do not round intermediate calculations. Round your answers to the nearest cent. b. What percentage of the payment represents interest and what percentage represents principal ror each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places. Why do these percentages change over urner I. 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 bafance declines. II. 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. III. 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. IV. 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

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