signment 4: Chapter 5 EOC problems eBook Problem Walk-Through Jan sold her house on December 31 and took a $50,000 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 included 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? I. The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principal increases II. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal decreases. III. The portion of the payment that is applied to interest and the portion of the payment that is applied to principal 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 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. -Select- c. How much interest must Jan report on Schedule B for the first year? Do not round intermediate calculations. Round your answer to the nearest cent. $ Will her interest income be the same next year? -Select d. If the payments are constant, why does the amount of interest income change over time? As the loan amalized paid of the beginninn balance bence the interest chache amanda 64 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 applied to interest increases, while the portion of the payment that is applied to principal decreases. III. The portion of the payment that is applied to interest and the portion of the payment that is applied to principal 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 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 -Select- c. How much interest must Jan report on Schedule B for the first year? Do not round Intermediate calculations. Round your answer to the nearest cent. OS $ Will her interest income be the same next year? -Select- 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 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 balance, 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 loan is amortized (paid off), the beginning balance declines, but the interest charge and the repayment of principal remain the same. -Select- Grade It Now Save & Continue Continue without saving AD 4 27 MacBook Air 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 prin II. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to prin III. The portion of the payment that is applied to interest and the portion of the payment that is applied to principal remain 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 princ V. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to prir -Select- c. How much interest must Jan report on Schedule B for the first year? Do not round intermediate calculations. Round your answe $ will her interest income be the same next year? -Select Her interest Income will increase in each successive year. Mer Interest Income will remain the same in each successive year, rest Income change over time? She will not receive interest income, only a of capital Her interest income will decline in each successive year. Jance, hence the interest charge, increases and the repayment of pri She will receive Interest only when the mortgage is paid off in 10 years. Mance, hence the interest charge, declines and the repayment of prin III. As the loan is amortized (paid off), the beginning balance, hence the interest charge, declines and the repayment of prin IV. As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of pri V. As the loan is amortized (paid off), the beginning balance declines, but the interest charge and the repayment of principa -Select- Grade It Now Save & Continue Continue without saving OPPILU Herest declines, while the portion of the payment that is applied to principal increases. 11. The portion of the payment that is applied to Interest increases, while the portion of the payment that is applied to principal decreases. III. The portion of the payment that is applied to interest and the portion of the payment that is applied to principal 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 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. -Select- c. How much interest must Jan report on Schedule B for the first year? Do not round Intermediate calculations. Round your answer to the nearest cent. $ Will her interest income be the same next year? -Select- 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 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 balance, 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 loan is amortized (paid off), the beginning balance declines, but the interest charge and the repayment of principal remain the same -Select Grade it Now Save & Continue Continue without saving A 27 MacBook Air Search this course Assignment 4: Chapter 5 EOC problems How much repayment of principal was induded? Do not round Intermediate calculations. Round your answer to the nearest cent. x $ 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 applied to interest increases, while the portion of the payment that is applied to principal decreases. III. The portion of the payment that is applied to interest and the portion of the payment that is applied to principal 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 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. -Set 11 II IV h interest must Jan report on Schedule B for the first year? Do not round Intermediate calculations. Round your answer to the nearest cent. Will her interest income be the same next year? -Select d. If the payments are constant, why does the amount of interest income change over time? I. As the loan 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 balance, 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 loan is amortized (paid off), the beginning balance declines, but the interest charge and the repayment of principal remain the same. -Select- Grade it Now Save & Continue Continue without saving