John and Cheryl just borrowed $26,830, on a home equity line of credit. The interest rate for the loan is 5.86% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 28% tax bracket. What will be their tax savings for the first year ending December 31? (Hint: assume that all of the interest paid this year is tax deductible.)

Their tax savings for the first year ending December 31 will be:

(Round to the nearest cent.)