Your uncle Fred just purchased a new boat. He brags to you about the low 7.0% interest rate​ (APR, monthly​ compounding) he obtained from the dealer. The rate is even lower than the rate he could have obtained on his home equity loan ​(8.0% ​APR, monthly​ compounding). But if his tax rate is 25% and the interest on the home equity loan is tax​ deductible, which loan is truly​ cheaper? The​ after-tax cost on the home equity loan is ______%. ​(Round to two decimal​ places.) Which is the cheaper​ loan?  ​(Select the best choice​ below.)     A. Both loans are the same when we account for taxes.   B. We cannot tell which loan is cheaper since we do not know the value of the principal amounts.   C. The home equity loan is cheaper than the boat loan from the dealer when compared on an​ after-tax basis.   D. The boat loan from the dealer is cheaper than the home equity loan when compared on an​ after-tax basis.

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