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

2400 • 0.07 = 168
168 • 12 = 2016

Answer 2

Total yearly deduction as interest is $
`2016\\`

Explanation:

Interest paid per month in the mortgage amount
`= 7\\` %

Monthly payment made
`= 2400\\` dollar

Total monthly mortgage deduction

`= 2,400 * (7)/(100) \\= 168\\`

Total annual mortgage deduction

`= 168 *12\\= 2016\\`