Jay and Lynn are considering whether or not to buy a particular property  valued at $850,000. They have $250,000 of their own funds to commit towards the purchase and they expect to incur an additional $40,000 in fees and stamp duty on the purchase itself. They are able to borrow at an interest rate of 5.4% per annum with interest compounded monthly. 

Loan repayments would be monthly with the first payment due at the end of the first month after purchasing the property. The term of the home loan is 20 years. They both work full-time earning a combined after-tax salary of $13,000 per month


Question How much interest have Jay and Lynn paid in year 1?