On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for $500,000 at a nominal annual rate of 7.0%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2016?

Select the correct answer.

a. $34,835.70

b. $34,834.00

c. $34,837.40

d. $34,839.10

e. $34,840.80