please use MS Word not excel . real state finance.

8. Tom paid $12k in mortgage interest and $8k in property taxes last year.

His average tax rate is 21.5%, his marginal tax rate is 28%.

Compute Toms tax shield from the mortgage interest and property tax deduction.

9. Jill buys a house for $975k, lives there for exactly 10 years and sells it.

Suppose Jills annual cost of ownership is exactly equal to the annual rent she would have paid to live in the same house.

Suppose the price of Jills house grows 3.5% annually.

Compute Jills annual IRR from owning net of renting.

(hint: look at the buy vs rent slides, assume no mortgage or buying/selling expenses.)

10. Jill buys a house for $975k, lives there for exactly 10 years and sells it.

Suppose Jills annual cost of ownership is exactly equal to the annual rent she would have paid to live in the same house.

Suppose the price of Jills house grows 3.5% annually.

Buying expenses are 5% of purchase price and selling expenses are 8% of sale price.

Compute Jills annual IRR from owning net of renting.

(hint: look at the buy vs rent slides, assume no mortgage.)