On January 1,2012,your sister's pet supplies business obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%,with 360 end-of-month payments.The firm can deduct the interest paid for tax purposes.What will the interest tax deduction be for 2012?

Question

Quizplus · Accepted Answer

$\begin{array}{lrlr}
\text { Years } & 30 & \text { Nominal } & 7.00 \% \
\text { Periods/yr } & 12 & \text { I/period } & 0.5833 \% \
\mathrm{~N}(12 \text { mo. } & 360 & \text { PMT } & \$ 1,663.26 \
\text { PV }=\text { Loan } & \$ 250,000 & \text { Interest, } 2009 & \$ 17,419.55 \
\text { FV } & \$ 0 & &
\end{array}$
 
Amortization schedule (first 3 months)
 11ea42d0_c070_a561_9abf_6b28e5353216_TB2090_00

On January 1,2012,your Sister's Pet Supplies Business Obtained a 30-Year