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Your uncle Fred just purchased a new boat. He brags to you about the low 7.0% interest rate (APR, monthly compounding) he obtained from the

Your uncle Fred just purchased a new boat. He brags to you about the low 7.0% interest rate (APR, monthly compounding) he obtained from the dealer. The rate is even lower than the rate he could have obtained on his home equity loan (8.0% APR, monthly compounding). If his tax rate is 25% and the interest on the home equity loan is tax deductible, which loan is truly cheaper?

(Round to two decimal places.)

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