Question: Test 1 - Version A Katie pays $ 1 0 , 0 0 0 in tax - deductible mortgage interest. Katie's marginal tax rate is

Test 1- Version A
Katie pays $10,000 in tax-deductible mortgage interest. Katie's marginal tax rate is 32%, average tax rate is 28%, ands
effective tax rate is 25%. Katie's tax savings from paying the mortgage interest is:
a. $2,500
b. $2,800
c. $1,600
d. $3,200
Test 1- Version A Katie pays $10,000 in tax-deductible mortgage interest.

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