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Ann [662]
3 years ago
9

6. 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 receive? 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?
Business
1 answer:
muminat3 years ago
4 0

Answer:

Explanation:

Mortgage value = $10,000

Nominal Interest rate = 10%

Number of mortgage years = 10 years

a) What is the dollar amount of each payment Jan receives?

Calculating Semi-annual Payment (PMT) using financial calculator:

Semiannual Interest Rate  = 10%/2

Number of Mortgage periods = 10*2

Present Value of Mortgage Value (PV)  = -10000

Semi-annual Dollar Payment on Mortgage Loan (PMT)  = $802.43

b) Semi-annual Payment = $802.43

Interest paid in 1st year = $10,000 * (10%/2) = $500

Principal paid in 1st year = $802.43 - $500 = $302.43

Total loan balance at the end of 1st year = $10,000 - $302.43 = $9,697.57

c) The interest amount for the second payment is $484.88

The total interest of the year = $984.88

Her income interest will not be the same next year because as years increase, interest decrease.

d) The loan is amortized, meaning that the principal amount is also repaid along with the interest payment. The principal amount decreases period after period. Interest is calculated based on the principal amount, the amount of interest income also changes.

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Orlov [11]

The question is incomplete:

Carl wants to add a new slide to his PowerPoint presentation. Which option should he use?

A) On the Insert tab, click the Insert New command.

B) On the Insert tab, click the Add New command.

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D) On the Home tab, click the Arrange command.

Answer:

C) On the Home tab, click the New Slide command.

Explanation:

PowerPoint is Microsoft software that is used to prepare presentations. If you want to add a new slide that is a page of the presentation, you can go to the home tab that is the default tab that appears on the top of the program and choose the option new slide. According to that, the answer is: on the Home tab, click the New Slide command.

The other options are not right because there is no insert new or add new command on the Insert tab and the arrange command is used for organizing the objects.

6 0
3 years ago
A company has a market capitalization of $20,000,000. It has 30% of its market cap sold under preferred stock and 70%
Kruka [31]

Answer: $6,000,000

Explanation:

Hi, to answer this question we simply have to multiply the total market capital of the company (20,000,000) by the percentage under preferred stock (30%) in decimal form.

Mathematically speaking:

20,000,000 x (30/100) = $6,000,000

Feel free to ask for more if needed or if you did not understand something.  

6 0
3 years ago
If _________ is constrained, we should __________ the staffing level to lower capacity.
Goryan [66]
 Capacity is constrained when demand exceeds supply and the flow rate is equal to process capacity. The capacity constraint<span> is a factor that prevents a business from achieving more output. </span><span>
If capacity is constrained, we should raise the staffing level to lower capacity.</span>
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In which of the following situations is having a good credit score important?
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Exercise 4-11 Computing net sales for multiple-step income statement LO P4 A company reports the following sales-related informa
dezoksy [38]

Answer:

Net sales revenue= 220,100

Explanation:

Giving the following information:

Sales, gross $ 245,000

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Sales= 245,000

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Net sales revenue= 220,100

4 0
3 years ago
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