21)

You bought a house with a 30-year mortgage with loan size $200,000 and interest rate 5%. Assuming the total transaction cost is $5,000 and your marginal income tax rate is 25%. What is your after-tax cash flow at end of the 3rd month if your loan will be outstanding for only 3 months? Take the tax deduction into consideration.

Select one:

a. $199,276.06

b. -$199,276.06

c. -$200,141.87

d. -$201,890.75