Jan sold her house on December 31 and took a \$45,000 mortgage as part of the payment. The 10-year mortgage has a 6% nominal interest rate, but it calls for semiannual payments beginning neat June 30. Next yeor Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was induded in the two Dayments she received during the veac a. What is the dollar amount of each payment Jan receives? Round your answer to the nearest cent: s b. How much interest was included in the first payment? Round your answer to the nearest cent. s. How much repoyment of principal was included? Do not round intermediate calculationk. Round your answer to the nearest cent. 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 principal increases. 11. The portion of the payment that is appled to interest increases, while the portion of the payment that is applied to principal decreases. III. The portion of the poyment that is appled to interest and the portion of the poyment that is applied to principal remains the same throughout the life of the foan. IV. The portion of the payment that is apphed to interest declines, 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 increases. C. How much interest must Jan report on Schedule B for the first year? Do not round intermediate calculstions. Round your answer to the nearest cent. s. Will her interest income be the sarne next year? d. If the payments are constant, why does the amount of interest income change over time? 1. As the foan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal increases. II. As the loan is amortized (paid off), the beginning balance, hence the interest charge, declines and the repayment of principal increases. III. As the loan is amortized (paid off), the beginning bolance, hence the interest charge, declines and the repayment of principal declines. IV. As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal declines. V. As the ioan is a mortized (paid off), the beginning balance declines, but the interest charge and the repayment of principal remain the same