You sold your lakeside cabin and provided seller-financing to the buyer through a $100,000 mortgage, which...

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You sold your lakeside cabin and provided seller-financing to the buyer through a $100,000 mortgage, which has a ten-year life, an 8% interest rate and semi-annual mortgage payments. Assume the sale took place on January 1st, with the first two mortgage payments due on June 30th and December 31st. When you file your tax return for the year of the sale, you must report your interest income on your IRS Form 1040. a) What is the amount of the mortgage payment you will receive each period? b) How much interest income will you need to report for the year of the sale? (Hint: - remember your middle-school math -1 =R x P x T) You sold your lakeside cabin and provided seller-financing to the buyer through a $100,000 mortgage, which has a ten-year life, an 8% interest rate and semi-annual mortgage payments. Assume the sale took place on January 1st, with the first two mortgage payments due on June 30th and December 31st. When you file your tax return for the year of the sale, you must report your interest income on your IRS Form 1040. a) What is the amount of the mortgage payment you will receive each period? b) How much interest income will you need to report for the year of the sale? (Hint: - remember your middle-school math -1 =R x P x T)

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