If the Rent on an Apartment Is $600 Per Month

question 50

Multiple Choice

If the rent on an apartment is $600 per month, which is equal to a mortgage payment on a house, how much additional tax savings will you realize if $200 of the monthly mortgage payment is interest and your tax bracket is 24%, assuming your itemized deductions will exceed the standard deduction?

• A) $50
• B) About $575
• C) Over $2,500
• D) Approximately $7,200

---

Definitions:

Supply

The total amount of a product or service that is available for purchase at any given price.

Labor Union

A collective organization of employees who bargain as a unit with employers.

Autoworkers

Employees in the automotive industry who are involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Automobiles

Motor vehicles with four wheels designed primarily for passenger transportation on roads.