Problem
In Problem 15.34, assume the house is owned by an engineer whose effective tax rate for state and federal income taxes is 30%. What is the after-tax IRR for the mortgage if inflation is 0%? 3%? 6%? 9%?
Problem 34
A 30-year mortgage for $100,000 has been issued. The interest rate is 10%, and payments are made annually. If your time value of money is 12%, what is the PW of the payments in year-1 dollars if inflation is 0%? 3%? 6%? 9%?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.