Hi All,

Under the 1986 tax law, interest payments on a refinanced home loan are deductible only if the amount of the loan does not exceed the purchase price of the home, the cost of improvements, and any additional amount borrowed against the home to pay for medical or educational expenses.



Error Analysis:

This sentence grammatically as well as logically maintains the parallelism in the sentence. The entities in the parallel list are.
a. the purchase price of the home,
b. the cost of improvements, and
c. any additional amount borrowed againt...
The sentence is correct as is.

POE:

Choice A: any additional amount borrowed against the home to pay for medical or educational expenses: Correct for the reason stated above.

Choice B: borrowing any additional amount against the home for payment of medical or educational expenses" Incorrect.
1."borrowing..." breaks the parallelism.
2. "to pay" is better than "for payment" to express the purpose of borrowing money.

Choice C: also borrowing any additional amount against the home to pay for medical or educational expenses: Incorrect. "also borrowing..." breaks the parallelism.

Choice D: any additional payment of medical or educational expenses that were borrowed against the home: Incorrect. It is illogical to say that "expenses" were borrowed. We can borrow money, not expenses.

Choice E: any additional payment borrowed against the home for medical or educational expenses: Incorrect. Again, "payment" cannot be borrowed.

Hope this helps.
Thanks.
Shraddha.