Debbie McAdams paid 6% interest on a $14,500 loan balance. Jan Burke paid $12,480 interest on a $97,500 loan. Based on 1 year
a. What was the amount of interest paid by Debbie?
Interest paid by Debbie
b. What was the interest rate paid by Jan? (Round your answer to the nearesi tenth percent.)
Interest rate paid by Jan
c. Debbie and Jan are both in the 28% tax bracket. Since the interest is deductible, how much would Debbie and Jan each save in
taxes? (Round your answers to the nearest cent.)
Debbie
Jan
Save in taxes