Javier and Anita Sanchez purchased a home on January 1, 2016, for $810,000 by paying $324,000 down and borrowing the remaining $486,000 with a 8 percent loan secured by the home. The loan requires interest-only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes' marginal tax rate is 30 percent. ( Round your intermediate calculations to the nearest whole dollar amount).

A. What is the after-tax cost of the interest expense to the Sanchezes in 2016?

B. Assume the original facts, except that the sanchezes rent a home and pay $38,880 in rent during the year. What is the after-tax cost of their rental payments in 2016?

C. Assuming the interest expense is their only itemized deduction for the year and that Javier and Anita file a joint return, have great eyesight, and are under 60 years of age, what is the after-tax cost of their 2016 interest expense?