Jan sold her house on December 31 and took a $20,000 mortgage aspart of the payment. The 10-year mortgage has a 12% nominalinterest rate, but it calls for semiannual payments beginning nextJune 30. Next year Jan must report on Schedule B of her IRS Form1040 the amount of interest that was included in the two paymentsshe received during the year. a. What is the dollar amount of eachpayment Jan receives? Round your answer to the nearest cent. $ b.How much interest was included in the first payment? Round youranswer to the nearest cent. $ How much repayment of principal wasincluded? Round your answer to the nearest cent. $ How do thesevalues change for the second payment? The portion of the paymentthat is applied to interest declines, while the portion of thepayment that is applied to principal increases. The portion of thepayment that is applied to interest increases, while the portion ofthe payment that is applied to principal decreases. The portion ofthe payment that is applied to interest and the portion of thepayment that is applied to principal remains the same throughoutthe life of the loan. The portion of the payment that is applied tointerest declines, while the portion of the payment that is appliedto principal also declines. The portion of the payment that isapplied to interest increases, while the portion of the paymentthat is applied to principal also increases. c. How much interestmust Jan report on Schedule B for the first year? Round your answerto the nearest cent. $ Will her interest income be the same nextyear? d. If the payments are constant, why does the amount ofinterest income change over time? As the loan is amortized (paidoff), the beginning balance, hence the interest charge, increasesand the repayment of principal increases. As the loan is amortized(paid off), the beginning balance, hence the interest charge,declines and the repayment of principal increases. As the loan isamortized (paid off), the beginning balance, hence the interestcharge, declines and the repayment of principal declines. As theloan is amortized (paid off), the beginning balance, hence theinterest charge, increases and the repayment of principal declines.As the loan is amortized (paid off), the beginning balancedeclines, but the interest charge and the repayment of principalremain the same.