Complete an amortization schedule for a $28,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent.
Beginning | Repayment | Ending | |||
Year | Balance | Payment | Interest | of Principal | Balance |
1 | $ | $ | $ | $ | $ |
2 | |||||
3 |
What percentage of the payment represents interest and what percentage represents principal for each of the three years? Do not round intermediate calculations. Round your answers to two decimal places.
% Interest | % Principal | |
Year 1: | % | % |
Year 2: | % | % |
Year 3: | % | % |
Why do these percentages change over time?
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