How much interest was included in the first payment

Assignment Help Finance Basics
Reference no: EM13298435

Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 10% 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?

b. How much interest was included in the first payment? How much repayment of principal was included? How do these values change for the second payment?

c. How much interest must Jan report on Schedule B for the first year? Will her interest income be the same next year?

d. If the payments are constant, why does the amount of interest income change over time?

 

Reference no: EM13298435

Questions Cloud

Mass of a moving object is doubled with no change in speed : When the mass of a moving object is doubled with no change in speed, by what factor is its momenteum changed? its kinetic energy? At what point in its motion is the KE of a pendulum bob a maximum? when its KE is half its maximum value, how much PE do..
Find the net force on the motorcycle and rider : A motorcycle and rider have a total mass of 252 kg the rider applies the brakes, What is the net force (in Newtons) on the motorcycle and rider combination
Determine what is the present worth of the investment : Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500.
Prepare the journal enrty to record the sales : The company had $660,000 of promotional sales in september. Prepare the journal enrty to record the sales.
How much interest was included in the first payment : How much interest was included in the first payment? How much repayment of principal was included? How do these values change for the second payment?
Determine largest load p that can be applied without cable : Determine largest load P that can be applied without any cable exceeding its yield strength. Bar length in 10 ft with aluminum directly in the center and steel cables 5 feet on either side. Steel cable lengths are 8 ft and aluminum cable is 10 ft...
Method called average that returns average of the number : Write a program that calculates the average of up to 50 numbers input by the user and stored in an array. The program should use a class named Statistics and have an AddNumber method that stores numbers into an array one at a time. The class should h..
Find where does the ball hit the ground : Phil is standing on a third floor balcony, 10m above the ground. Where does the ball hit the ground
What will be the total cost per lane-mile per inch depth : If an alternative base material is available for $5,791.50 per lane-mile per inch depth, to use it, the minimum depth for asphalt has to be increase to 6 inch with no change of base and subbasedepth. What will be the total cost per lane-mile per i..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd