Fran Paid the Following Amounts of Interest During 2019 Calculate the Amount of Fran's Interest Deduction for 2019

question 33

Essay

Fran paid the following amounts of interest during 2019: $$\begin{array} { l r } \text { Qualified home mortgage interest } & \$ 7,000 \\\text { Automobile loan interest } & \$ 500 \\\text { Qualified interest on second residence } & \$ 5,000 \\\text { Credit card interest } & \$ 300\end{array}$$ Calculate the amount of Fran's interest deduction for 2019.

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Definitions:

Withdrawals

The process of removing funds from an account, typically from a bank or investment account.

Retire

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Beginning

Beginning, in financial terms, often refers to the starting point or initial value of an account, inventory, or financial statement at the onset of a period.

Nominal Annual Interest Rate

The percentage of interest charged on a loan without adjustment for the effect of compounding or inflation over a period of a year.