Assume That You Presently Have a Monthly Home Mortgage with a Stated

question 39

Multiple Choice

Assume that you presently have a monthly home mortgage with a stated interest rate of 7% APR.Also assume that you are able to deduct your interest on your tax return.If your income tax rate is 20%,then the after-tax EAR for your home mortgage is closest to:

• A)5.6%.
• B)7.2%.
• C)5.8%.
• D)7.0%.

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Definitions:

Orientation

Orientation typically refers to the layout or direction in which something is set or arranged, often used in context with screen or page setup options like portrait or landscape mode.

Portrait

An orientation of a page, image, or document where the height is greater than the width, typically used for individual photographs or paintings.

Landscape

An orientation for documents or media where the width is greater than the height, opposite of portrait orientation.

Shape Outline

A feature in graphic design and word processing software that applies an outline effect to the edges of a shape, enhancing its visual distinction.