Your Brother's Business Obtained a 30-Year Amortized Mortgage Loan for $250,000

question 32

Multiple Choice

Your brother's business obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%,with 360 end-of-month payments.The firm can deduct the interest paid for tax purposes.What will the interest tax deduction be for Year 1?

• A)$17,419.55
• B)$17,593.75
• C)$17,769.68
• D)$17,947.38
• E)$18,126.85

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Definitions:

Punishment

A method used to reduce undesirable behavior by applying a negative consequence or removing a positive stimulus following the behavior.

Extinction

In the context of behavioral psychology, it refers to the gradual weakening and eventual disappearance of a conditioned response when it is no longer reinforced.

Behaviorist Approach

A learning theory that focuses on observable behaviors and the ways they're learned, emphasizing the importance of external stimuli and reinforcement.

Observable Behavior

Refers to actions or reactions of an individual or system that are visible and measurable.