Loan amortization schedule
Joan Messineo borrowed $40,000 at a 4% annual rate of interest
to 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
and principal breakdown of each of the three loan payments.
c. Explain why the interest portion of each payment declines
with the passage of time.
a. The amount of the equal, annual, end-of-year loan...