Jan sold her house on December $31$ and took a $$35,000$ mortgage as part of the payment the $10$ year mortgage has a $10\%$ nominal interest rate but it calls for semi annual payments beginning next June $30$ next year Jen must report on schedule be if her IRS form $1040$ the amount of interest that was included in the two payments she received during the year. What is the dollar amount of each payment Jan receives? How much interest was included in the first payment? How much repayment of principal was included? Hos do these values change for the second payment?

A$.$ the portion of the payment that is applied to interested clients while the portion of the payment that is applied to principal increases

B$.$ the portion of the payment that is applied to interest decreases while the portion of the payment that is applied to principle decreases

C$.$ the portion of the payment that is applied to interest in the portion of the payment that is applied to principal remain the same throughout the life of the loan

D the portion of the payment that is applied to interested clients while the portion of the payment that is applied to principal also declines

E$.$ the portion of the payment that is applied to interest increases while the portion of the payment that is applied the principal also increases.

how much interest must Jan report on Schedule B for the first year? What will her interest income be the same next year?

A$.$ Her interest income will increase each successive year

B$.$ her interest income will remain the same each successive year

C$.$ she will not receive interest income only a return of capital

D$.$ Her interest income will decline In each successive year

E$.$ she will receive interest only when the mortgage is paid off in $10$ years

if the payments are constant why does the amount of interest income change over time?

A$.$ as a loan is amortized the beginning balance hence the interest charge increases in the repayment of principle increases

B$.$ As the loan is amortized the beginning balance hence the interest charge declines in the repayment of principle increases

C as a loan is amortized the beginning balance hence the interest charge declines in the repayment of principal declines

D as the loan is amortized the beginning balance hence the interest charge increases in the

repayment of principal declines

E as a loan is amortized the beginning balance declines by the interest charge and the repayment