Consider a person with a house valued at $150,000,a mortgage rate of 11 percent, property taxes of 3 percent,miscellaneous expenses and depreciation of 1 percent
Housing inflation of 7 percent,and the person is in the 30 percent tax bracket.If the
Housing inflation rate was raised to 8 percent,how much would the annual cost of
Housing change?

Question

Quizplus · Accepted Answer

The annual cost of housing would increase by $1,500 due to the 1 percent increase in housing inflation on a $150,000 house. This is calculated by taking 1 percent of $150,000, which equals $1,500.

Consider a Person with a House Valued at $150,000,a Mortgage