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problem: You are enrolling in an MBA program. To pay your teaching, you can either take out a standard student loan [so the interest payments are not tax deductible] that has an EAR of 5 percent or you can use a tax deductible home equity loan with an APR [monthly] of six percent. You anticipate being in a very low tax bracket, so your tax rate will be only fifteen percent. Which loan would you use?

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