Sarantuya,a College Student,feels That Now Is a Good Time to Buy

question 65

Essay

Sarantuya,a college student,feels that now is a good time to buy stocks.However,because she doesn't have any savings,she decides to borrow $15,000 at an annual interest rate of 8 percent.She must make an interest-only payment each year for five years plus repay the entire principal in year five.On August 1,20X8 when Sarantuya obtained the loan,Sarantuya invested $10,000 in several individual stocks and used the remaining $5,000 to pay her tuition for the year.Assuming Sarantuya's net investment income this year is greater than her investment interest expense this year,how much investment interest expense can she deduct in 20X8?

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Definitions:

Prostate Cancer

A type of cancer that occurs in the prostate gland of men, often characterized by difficulty with urination, pelvic pain, and, in advanced stages, other more severe symptoms.

Numbness

A loss or reduction of sensation in a part of the body, often experienced as a symptom of various conditions.

Hemorrhoids

Swollen veins in the lowest part of the rectum and anus, often causing pain and discomfort.

Ovarian Cancer

A type of cancer that begins in the ovaries, the female reproductive glands where eggs are produced.