lan sold her house on December 31 and took a $5,000 mortgage as part of the payment. The 10-year mortoage as a 10%w nominal interest rate, b on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she receved during the year but it calls for semiannual payments beginning next June 30. Next year a What is the dollar amount of each payment Jan receives? Round your answer to the nearest cent 401.21 b. How much interest was included in the first payment? Round your answer to the nearest cent 250 How much repayment of principal was included? Round your answer to the nearest cent 151.21 How do these values change for the second payment? . The portion of the payment that is applied to interest declines, white the portion of the payment that is applied to prmopal creases I1. The The portion of the payment that is appted to interest Md the portion of the-yment that app ied to prmopal reman the sam. throug ot the re e' the- IV. The portion of the payment that is appied to interest decines, whie the portion of the payment that is applied to prinopal also dectines V. The portion of the payment that is appied to nterest increases, whle the portion of the payment that is apphied to prinopal also ncreases portion of the payment that is appled to interest ncreases, while the portion of the payment thar is sepied to pinopal decreases now much interest must Jan report on Schedule B for the frst yer? Round your answer to the nearest cent Wil her interest income be the same next year? d. If the payments are constant, why does the amount of interest income change over time? As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of pncipal ancreases Il. As the loan is amortized (paid off), the beginning balance, hence the interest charge, decines and the repayment of principal increases III As the loan is amortized (pad off), the beginning balance, hence the nterest charge, decioes and the repayment of prnopal decines IV. As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal decines V. As the loan is amortized (paid off), the b balance declines, but the interest charge and the repayment of principal remain the same