7. Problem 5.22 (Loan Amortization) ebook Problem Walk Through Jan sold her house on December 31 and took a $5,000 mortgage as part of the payment. The 10-year mortgage has an 8 nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jon must report on Schedule B of her IRS Form 1040 the amount of interest that was Induded in the two payments she received during the year. What is the dollar amount of each payment Son receives? Round your answer to the nearest cent $ 1. How much interest was included in the first payment? Round your answer to the nearest cent. How much repayment of precioal was included? Do not round intermediate calculations, Round your answer to the newest cont 5 How do these values change for the second payment? 1. The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to prinopal increases 11 The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal decreases III. The portion of the payment that is applied to interest and the portion of the payment that is applied to prinopel verains the same throughout the life of the loan IV. The portion of the payment that is applied to interest dedines, while the portion of the payment that is applied to principal also declines v The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal also increatet How much interest must dan report on Schedule B for the first year? Do not rosind intermediate colculations. Round your answer to the nearest cent, $ will her interest income be the same next year? d. the payments are constant, why does the amount of interest income change over time 1. As the loan is amortized (paid off the beginning balance, hence the interest charge, increases and the repayment of propal incronies IL As the loan amortized (pardoff), the beginning balance, hence the interest charge declines and the repayment processes TIL. As the loan is amortred (paid of the beginning balance, hence the interest charge, delines and the repayment of principal de TV As the loan is amorted Cold of the beginning balance, hence the interchange increases and the repayment of principal declines V. As the loan is amortured paid of the beginning balance declines, but the worst charge and the cement of incomain the same