Derek and Meagan Jacoby recently graduated from State University and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherited $68,000 from her grandfather who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $3,250. They also found a three-bedroom home that would cost $328,000 to purchase. The Jacoby's could use Meagans inheritance for a down payment on the home. Thus, they would need to borrow $260,000 to acquire the home. They have the option of paying two discount points to receive a fixed interest rate of 4.50 percent on the loan or paying no points and receiving a fixed interest rate of 5.70 percent for a 30-year fixed loan. Though anything could happen, the couple expects to live in the home for no more than five years before relocating to a different region of the country. Derek and Meagan dont have any school-related debt, so they will save the $68,000 if they dont purchase a home. Also, consider the following information: The couples marginal tax rate is 24 percent. Regardless of whether they buy or rent, the couple will itemize their deductions. If they buy, the Jacoby's would purchase and move into the home on January 1, 2018. If they buy the home, the property taxes for the year are $4,600. Disregard loan-related fees not mentioned above. If the couple does not buy a home, they will put their money into their savings account where they earn 5 percent annual interest. Assume that all unstated costs are equal between the buy and rent option. Required: Help the Jacoby's with their decisions by answering the following questions: (Leave no answer blank. Enter zero if applicable.)

a. If the Jacoby decide to rent the home, what is their after-tax cost of the rental for the first year (include income from the savings account in your analysis)? (Round your intermediate calculations to the nearest whole dollar amount.)