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Business, 19.11.2019 02:31 lexibyrd120

The wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. given their projected taxable income, the wilmoths are in the 24% federal income tax bracket and the 8% state income tax bracket (i. e., an aggregate marginal tax bracket of 32%). assume that the wilmoths will benefit from itemizing their deductions for both federal and state purposes. the total cash outlay during the first year of ownership will be $23,400 ($1,200 principal payments, $22,200 qualified residence interest payments). as a result, the annual after-tax cost of financing the purchase of the home will be $

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