Question

question 3 of 10
bodes monthly mortgage payment was $1200 last year, and on average, 11%
of each payment was interest. if bode itemizes deductions on his federal
income tax return, how much can he deduct for mortgage interest?

a. $1584

b. $132

c. $100

d. $1332

Explanation:

Step1: Calculate monthly interest

Monthly payment is $1200, 11% is interest. So monthly interest = $1200 × 0.11 = $132.

Step2: Calculate annual interest

There are 12 months in a year. Annual interest = $132 × 12 = $1584.

Answer:

A. $1584