1. Complete an amortization schedule for a $17,000 loan to berepaid in equal installments at the end of each of the next 3years. The interest rate is 6% compounded annually. If an amount iszero, enter \"0\". Do not round intermediate calculations. Round youranswers to the nearest cent.

   	Beginning			Repayment	Remaining
   Year	Balance	Payment	Interest	of Principal	Balance
   1	$  Â	$  Â	$  Â	$  Â	$  Â
   2	    Â	    Â	    Â	    Â	    Â
   3	    Â	    Â	    Â	    Â	    Â

2. What percentage of the payment represents interest and whatpercentage represents principal for each of the 3 years? Do notround intermediate calculations. Round your answers to two decimalplaces.

   	% Interest	% Principal
   Year 1:	  %	  %
   Year 2:	  %	  %
   Year 3:	  %	  %

   Why do these percentages change over time?

   1. These percentages change over time because even though thetotal payment is constant the amount of interest paid each year isdeclining as the remaining or outstanding balance declines.
   2. These percentages change over time because even though thetotal payment is constant the amount of interest paid each year isincreasing as the remaining or outstanding balance declines.
   3. These percentages change over time because even though thetotal payment is constant the amount of interest paid each year isdeclining as the remaining or outstanding balance increases.
   4. These percentages change over time because even though thetotal payment is constant the amount of interest paid each year isincreasing as the remaining or outstanding balance increases.
   5. These percentages do not change over time; interest andprincipal are each a constant percentage of the total payment.
   -Select-IIIIIIIVV