Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: SeekAndFind

This isn’t such an easy question.

Is the interest tax deductible?

What is the term of the loan?

What is the inflation rate?

Are they using the traditional definition of percentage, or the one that the US government uses?


12 posted on 11/19/2015 8:27:59 AM PST by Fresh Wind (Falcon 105)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: Fresh Wind

Why does the inflation rate matter? Both loans would be for the same thing. Deduction, too, would apply to both, wouldn’t it. If your interest is deductible it is deductible whether you are charged a flat amount or a percentage, so long as it is still interest and not categorized as something else. The 105 payback was just another way of saying 5%.

Clearly the point of the question was a third grade calculation test. I do think the term and terms of the loan matter, but when absent you always take it at face value without complications.


22 posted on 11/19/2015 8:37:07 AM PST by The Ghost of FReepers Past (Woe unto them that call evil good, and good evil; that put darkness for light..... Isaiah 5:20)
[ Post Reply | Private Reply | To 12 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson