Question

The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

a. Complete an amortization schedule for a $50,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 6% compounded annually. Round all answers to the nearest cent.

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

b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places.

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

Answer 1