Question

Rollie's monthly mortgage payment was $2400 last year and over average 7% of each payment was interest. Of Rollie's itemizes deductions on his federal income tax return how much can he deduct for mortgage interest?

Answer 1

Answer:

Total yearly deduction as interest is $ $2016$

Step-by-step explanation:

Interest paid per month in the mortgage amount $= 7$ %

Monthly payment made $= 2400$ dollar

Total monthly mortgage deduction

$= 2,400 * \frac{7}{100} \\= 168$

Total annual mortgage deduction

$= 168 *12\\= 2016$

Answer 2

2400 • 0.07 = 168
168 • 12 = 2016