Joan Messineo borrowed $10,000 at a 17% annual rate of interest to be repaid over 3...

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Joan Messineo borrowed $10,000 at a 17% annual rate of interestto be repaid over 3 years. The loan is amortized into three equal,annual, end-of-year payments.
a. Calculate the annual, end-of-year loan payment
b. Prepare a loan amortization schedule showing the interest andprincipal breakdown of each of the three loan payments.
c. Explain why the interest portion of each payment declineswith the passage of time.

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If the loan amount is P rate on interest monthly is r and loan term is n the EMI will be EMI Pr1 rn 1 rn 1 Where Loan amount P 10000 Time n 3 Interest rate r 17 See Answer

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Joan Messineo borrowed $10,000 at a 17% annual rate of interestto be repaid over 3 years. The loan is amortized into three equal,annual, end-of-year payments.a. Calculate the annual, end-of-year loan paymentb. Prepare a loan amortization schedule showing the interest andprincipal breakdown of each of the three loan payments.c. Explain why the interest portion of each payment declineswith the passage of time.