Nicole, a college student, feels that now is a good time to buy stocks. However, because she doesn't have any savings, she decides to borrow $$15,000$ at an annual interest rate of $8$ percent. She must make an interest$-$only payment each year for five years, plus repay the entire principal in Year Five. On August $1,20$X$8,$ when Nicole obtained the loan, Nicole invested $$10,000$ in several individual stocks and used the remaining $$5,000$ to pay her tuition for the year. Assuming Nicole's investment income this year is greater than her investment interest expense this year, how much investment interest expense can she deduct in $20$X$8?$

Answer rating: 100% (QA)

To determine the investment interest expense that Nicole can deduct in 20X8 we need to ca... View the full answer