Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 12% nominal interest rate, but it calls for semiannual payments beginning next June 30 . Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. a. What is the dollar amount of each payment Jan receives? Round your answer to the nearest cent. $ b. How much interest was induded in the first payment? Round your answer to the nearest cent. How much repayment of principal was included? Do not round intermediate calculations. Round your answer to the nearest cent. $ How do these values change for the second payment? 1. The portion of the payment that is applied to interest dedines, while the portion of the payment that is applied to principat iricreasen. I1. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principat decresses. I1. The portion of the payment that is applied to interest and the portion of the payment that is applied to prinopal remains the same throughout the life of the loan. IV. The portion of the payment, that is applied to interest declines, while the portion of the payment that is applied to princpat also dedinen, V. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal also increases. Q. How much interent must Jan report on Schedule B for the first year? Do not round intecmediare calculations. Round your angwor to the nearestcent. d. If 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 principal 11. As the loan is amortized (paid off), the beginning balance, hence the interest charge, declines and the repayment of principal in III. As the loan is amortized (paid off), the beginning balance, hence the interest charge, dedines and the repayment of principal d IV. As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal v. As the loan is amortized (paid off), the beginning balance dedines, but the interest charge and the repayment of prindipal rem same