Jan sold her house on December 31 and took a $30,000 mortgage as part of the...

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Jan sold her house on December 31 and took a $30,000 mortgage aspart of the payment. The 10-year mortgage has an 11% 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.
What is the dollar amount of each payment Jan receives? Roundyour answer to the nearest cent.
How much interest was included in the first payment? Round youranswer to the nearest cent.Â Â
How much repayment of principal was included? Do not roundintermediate calculations. Round your answer to the nearestcent.
How much interest must Jan report on Schedule B for the firstyear? Do not round intermediate calculations. Round your answer tothe nearest cent.

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4.2 Ratings (538 Votes)

Calculating dollar amount of each paymentAs payments for loan or mortgage are made every six monthssoSemi annual interest rate nominal interest rate 2 11 2 550No of payment or half years in loan 2 x no of years of loan 2 x 10 20PMT function in excel can be used to find dollar amount of eachpayment Jan ReceivesFormula to be used in excel PMTratenperpvUsing PMT function in See Answer

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