12. Jim has a house payment of $2,000 per month of which $1,800 is interest and real estate taxes with the remaining $200 representing a repayment of the principal balance of the note. Jim’s marginal tax rate is 30 percent. What is Jim’s after-tax cost of his home mortgage payment?

a. $600

b. $540

c. $1,400

d. $1,460

e. Some other amount LO 12.6