Assume the following parameter values: Mortgage Interest Rate: $4$ percent Annual Property Tax Rate: $2$ percent Depreciation Rate: $0\mathrm{.}5$ percent Purchase value of property: $$400,000$ Housing inflation rate: $1$ percent Assume an interest$-$only mortgage $($a$)$ Calculate the annual cost of housing to an owner$-$occupant $($b$)$ Now suppose property tax are tax deductible, and income is subject to a tax rate of $30$ percent. Calculate the annual cost of housing to an owner$-$occupant $($c$)$ Now suppose mortgage interest and property taxes are tax deductible, and income is subject to a tax rate of $30$ percent. Calculate the annual cost of housing to an owner$-$occupant $$ Now assume that the owner$-$occupant borrows with an LTV of $90\%,$ and the opportunity cost of the down$-$payment is a $4$ percent return per$-$year. $($d$)$ Re$-$calculate part $($c$)$ under the new assumption about borrowing $$ Now assume that mortgage interest deduction is capped at $$10,000($the taxpayer can only claim the first $$10,000$ in mortgage interest as a deduction$)($e$)$ Maintain the assumptions from $($d$)$ and calculate the new annual user cost of housing to the owneroccupant $($f$)$ Do you think this cap is a good policy? explain why or why not.