Exercise 10-21 (Algorithmic) (LO. 5, 8) 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 (.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 $25,200 ($2,520 principal payments, $22,680 qualified residence interest payments). If required, round your interim calculation to nearest dollar. As a result, the annual after-tax cost of financing the purchase of the home will be Previous Next >