Tom paid $17,000 in mortgage interest and $8,000 in property taxes last year. His average tax rate is 21.5%, his marginal tax rate is 28%. Compute Toms tax shield from the mortgage interest and property tax deduction. (Answer is not 6160)

Sam bought a house that costs $500,000. Sam got a 96% LTV loan. The lender demanded that Sam buy private mortgage insurance to insure the portion of the loan over 75% LTV. Suppose 5 years later, Sams mortgage balance is $400,000. However, Sam defaults and his house sells for $220,000 in a foreclosure auction. How much will the mortgage insurance company pay Sams lender? (Answer is not 8000)