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You are paying 6% on your foed-rate mortgage & earning 5% on your stock index fund. You are almost certain the stock market will remain

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You are paying 6% on your foed-rate mortgage & earning 5% on your stock index fund. You are almost certain the stock market will remain steady for the foreseeable future. You recently received money from a very generous aunt. You decide either to invest the money in your stock index fund or pay down your mortgage Your tax rate is 20%. What should you do? Invest in the index fund because your after-tax mortgage cost is 4,0% & you are earning an after-tax rate of 4.8% on your index fund. O Pay down your mortgage because your after-tax mortgage cost is 4,8% & you are earning an after-tax rate of 4% on your index fund. None of the analyses is correct Invest in the index fund because your after-tax mortgage cost is 4.8% & you are earning an after-tax rate of 4% on your index fund, QUESTIONS If you pay off part of your mortgage early, the payment you make goes to the principal interest None of the categories listed insurance O taxes

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