Bswigniment 4 Chapter 5 Ens-of-Chapter Problems 1. Zype herie bovearist 1. The portion of the payment that is applied to internst increases, whide the portion of the payment that is applied to principal decreases. Ifi. The portion of the payment that is applied to interest and the pertine of the payment that is applied to principal remains the same throughout the life of the loan IW The portion of the payment that is applied to interest declines, while the prortion of the payment that is applied to principal also declines. Q. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal alis incrianes. c. How much interest must Jan neport on Schedule B for the fint year? Do not round intermediate calculations. Round your anawer to the nearest cunt. 5 Will her interast income be the same next year? d. If the payments are constant. zhy does the amount of interest inceme change ever time? 1. As the loan is amortited (paid off), the beginning balance. hence the interest charge, increaser and the repayment of principal incraases. 31. As the loan is amertited (paid off), the beginning balance. hence the interest charge, declines and the repayment of principal increases. thi. As the isan is amortited (baid off), the beginning balance. hence the interent charge. declines and the repayment cf principal declinas. IV As the loan is amortiesd (said off), the beginning balance, hence the intereit charge. increoses and the repayment of arincipal declines. V. As the bon is amertiesd (peid off). the beginaing balance declines: but the intmret charge and the reparment of princinal remain the same. Han must regort an Schedile ff of her igs form 1040 the amount of intereit that was induded in the thio piermente she recened during the yeac. a. Whit is the dollar amount of each pwymert lae receiver? Round yeur aniver to the nearast cent. b. Hew much intarent was inclubed in the frat pryment? Found your ansiver to the neareit cent. Hari do tose walles change for the second swrment? Bswigniment 4 Chapter 5 Ens-of-Chapter Problems 1. Zype herie bovearist 1. The portion of the payment that is applied to internst increases, whide the portion of the payment that is applied to principal decreases. Ifi. The portion of the payment that is applied to interest and the pertine of the payment that is applied to principal remains the same throughout the life of the loan IW The portion of the payment that is applied to interest declines, while the prortion of the payment that is applied to principal also declines. Q. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal alis incrianes. c. How much interest must Jan neport on Schedule B for the fint year? Do not round intermediate calculations. Round your anawer to the nearest cunt. 5 Will her interast income be the same next year? d. If the payments are constant. zhy does the amount of interest inceme change ever time? 1. As the loan is amortited (paid off), the beginning balance. hence the interest charge, increaser and the repayment of principal incraases. 31. As the loan is amertited (paid off), the beginning balance. hence the interest charge, declines and the repayment of principal increases. thi. As the isan is amortited (baid off), the beginning balance. hence the interent charge. declines and the repayment cf principal declinas. IV As the loan is amortiesd (said off), the beginning balance, hence the intereit charge. increoses and the repayment of arincipal declines. V. As the bon is amertiesd (peid off). the beginaing balance declines: but the intmret charge and the reparment of princinal remain the same. Han must regort an Schedile ff of her igs form 1040 the amount of intereit that was induded in the thio piermente she recened during the yeac. a. Whit is the dollar amount of each pwymert lae receiver? Round yeur aniver to the nearast cent. b. Hew much intarent was inclubed in the frat pryment? Found your ansiver to the neareit cent. Hari do tose walles change for the second swrment
