Your uncle Fred just purchased a new boat. He brags to you about the low 7.1% 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 (7.9% APR monthly compounding). But if his tax rate is 23% and the interest on the home equity loan is tax deductible which loan is truly cheaper?

The after-tax cost on the home equity loan Is?