The Wilmoths plan to purchase a house but want to determine the after-tax cost of financing its purchase. Given their projected taxable income, the Wilmoths are in the 24% Federal income tax bracket and the 8% state income tax bracket (i. e., an aggregate marginal tax bracket of 32%). The total cash outlay during the first year of ownership will be $23,400 ($1,200 principal payments, $22,200 qualified residence interest payments).As a result, the annual after-tax cost of financing the purchase of the home will be $.

The annual after-tax cost of financing the purchase of the home will be $ 16,296.

Explanation:

To calcuate the annual after-tax cost of financing the purchase of the home we have to use the following formula:

annual after-tax cost of financing the purchase= Installment -tax saving

Acording to the data Tax Saving = 32 % x of Interest amount , hence, tax saving= 32% x $22,200

          =$7,104

So, annual after-tax cost of financing the purchase= $23,400- $7,104

                                                                                    = $ 16,296

c, theres a double tax on the business earnings

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know