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Open spreadsheet a Complete an amortization schedule for a 45 000 loan to be repaid in equal installments at the end of each of the next three years The interest rate is 10 compounded annually Round all answers to the nearest cent Year 1 2 3 Year 1 Year 2 Year 3 Beginning Balance Interest Payment Principal 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 Repayment of Principal Ending Balance c 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 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 V These percentages do not change over time interest and principal are each a constant percentage of the total payment

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