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5. There is a 30-year loan of $250,000. The nominal interest rate is 7%; each payment happens at the end of each month. Suppose that,

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5. There is a 30-year loan of $250,000. The nominal interest rate is 7%; each payment happens at the end of each month. Suppose that, from the borrower's perspective, the interest can be tax deductible. Calculate the interest that can be deducted for tax for the 1st year. [15 points]

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