Amortization schedule
a. Complete an amortization schedule for a $35,000 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. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance
Beginning Balance, Payment, Interest, Principal, Ending 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: ---% ---%