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You have just obtained a personal loan for a new home movie system under the simple interest method- You have borrowed $12,000 for 9 months at an annual rate of 10%- Your marginal tax rate is 28%- What are the total interest charges you would pay if the loan is paid off on time?

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What Is Consumer Debt?

Consumer debt consists of personal debts that are owed as a result of purchasing goods that are used for individual or household consumption. Credit card debt, student loans, auto loans, mortgages, and payday loans are all examples of consumer debt.
 


You have just obtained a personal loan for a new home movie system under the simple interest method- You have borrowed $12,000 for 9 months at an annual rate of 10%- Your marginal tax rate is 28%- What are the total interest charges you would pay if the loan is paid off on time?






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