Answer:
Amortization schedule:
Year Beginning Scheduled Principal Interest Ending
balance payment paid paid balance
1 $41,000 $17,070.31 $12,150.31 $4,920 $28,849.69
2 $28,849.69 $17,070.31 $13,608.35 $3,461.96 $15,241.34
3 $15,241.34 $17,070.31 $15,241.34 $1,828.97 $0
What percentage of the payment represents interest and what percentage represents principal for each of the three years
Year Beginning Scheduled Principal Interest Ending
balance payment paid paid balance
1 $41,000 $17,070.31 <u>71.78%</u> <u>28.22%</u> $28,849.69
2 $28,849.69 $17,070.31 <u>79.72%</u> <u>20.28%</u> $15,241.34
3 $15,241.34 $17,070.31 <u>89.29%</u> <u>10.71%</u> $0