You bought a house with a 30-year mortgage with loan size $500,000 and interest rate 6%. Assuming the total transaction

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answerhappygod
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You bought a house with a 30-year mortgage with loan size $500,000 and interest rate 6%. Assuming the total transaction

Post by answerhappygod »

You bought a house with a 30-year mortgage with loan size
$500,000 and interest rate 6%. Assuming the total transaction cost
is $4,000 and your marginal income tax rate is 30%.
What is the annual effective cost of this loan after-tax if your
loan will be outstanding for 1 month?
.98%
13.91%
13.67%
11.78%
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