For the Fixed-Rate Mortgage Below, Determine the Portion of the Total

Multiple Choice

For the fixed-rate mortgage below, determine the portion of the total monthly payment which is income-tax deductible. Round your answer to the nearest dollar. $$\begin{array} { l l } \text { Amount of mortgage: } & \$ 142,000 \\\text { Term of mortgage: } & 25 \text { years } \\\text { Interest rate: } & 7.0 \% \\\text { Annual property tax: } & \$ 1025 \\\text { Annual insurance: } & \$ 620 \\\text { Owner's income tax bracket: } & 30 \%\end{array}$$

A) $914
B) $965
C) $1079
D) $880