$1$ point

Q$23-$Q$25$ are based on the same assumptions as follows:

You bought a house with a $30-$year mortgage with loan size $$1,000,000$ and interest rate $6\%.$ Assuming the total transaction cost is $$8,000$

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?

$13\mathrm{.}91\%$

$12\mathrm{.}91\%$

$14\mathrm{.}91\%$

$15\mathrm{.}91\%$