7. Problem 5.22 Loan Amartration) eBook Problem Walk-Through an old her house on December Stand took a $80,000 mortgage as part of the payment. The 10-year mortgage has a 6 nominal interest rate, but it calls for semana payments beginnings June 30. Next year Janmast report on schedule of her IRS Form 1040 the amount of interest that was included in the two payments she received during 2. What is the collar amount of each payment an receives? Round your answer to the nearest hot $ How much interest was included in the first payment Round your answer to the nearest cent $ How much recement of principal was included? De nat round Intermediate calculation. Round your answer to the nearest cont. 5 How do these values change for the second payment? L The porn of the payment that is applied to interest dedines, while the portion of the payment that is applied to principal increase IL The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal decreases BIL 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 feet the loan 1. The porta of the payment that is applied to interest dedines, while the portion of the payment that is applied to principal also decine The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal sincrones How much interest mustan report on Schedule for the first year Do not round intermediate calculations. Round your answer to the nearest cent TE How much repayment ai principal was included? Do not round Intermediate calculations. Round your answer to the nearest cont $ 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 principal increases I The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to propal decreases 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 of the loan The portion of the payment that is applied to interest dedines, while the portion of the payment that is applied to principal also decines The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principales How much interest must en report on Schedule is for the first year? Do not round intermediate calculations. Round your answer to the rarest cent. 5 Wither recome be the same rent year? . the payments are constant, why does the amount of interest income change over time? LAs the anis amore paid of the beginning balance, hence the interest charge, increases and the repayment of principal increase As the fans amortized (paid off), the beginning balance, hence the interest charge, declines and the repayment of principal increases I. As the loans amortized (paid off), the beginning balance, hence the interest charge declines and the repayment of principal declines As the loan amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal decis As the loan is amore paid off), the beginning balance declines, but the interest charge and the repayment of principal remain the same 5 How much repayment et principal was included? Do not round intermediate calculations. Round your answer to the nearest cont $ How do these values change for the second payment? The portion of the payment that is applied to interest dedines, while the portion of the payment that is applied to principal increases The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal decreases II The portion of the peyment 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 The portion of the payment that is applied to interest dedines, while the portion of the payment that is applied to principal also declines The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal also incrones c. How much interes must Jan report on Schedule B for the first year? Do not round Intermediate calculations. Round your answer to the nearest cent. $ Wher interest income be the same next year? of interest income change over time? ning balance, hence the interest charge, increases and the repayment of principal increases soyee ning balance, hence the interest charge, decines and the repayment of principal increases Disegnining balance, hence the interest charge, declines and the repayment of principal declines TV As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal declines As the man is amortized (paid off), the beginning balance declines, but the interest charge and the repayment of principal remain the same