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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 $$54,000$ from her grandfather, who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $$2,900.$ They also found a three$-$bedroom home that would cost $$244,000$ to purchase. The Jacobys could use Meagan's inheritance for a down payment on the home. Thus, they would need to borrow $$190,000$ to acquire the home. They have the option of paying two discount points to receive a fixed interest rate of $4\mathrm{.}50$ percent on the loan or paying no points and receiving a fixed interest rate of $5\mathrm{.}70$ 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 don't have any school$-$related debt, so they will save the $$54,000$ if they don't purchase a home. Also, consider the following information:

The couple's marginal tax rate is $20$ percent.

Regardless of whether they buy or rent, the couple will itemize their deductions and have the ability to deduct all of the property taxes from the purchase of a residence.

If they buy, the Jacobys would purchase and move into the home on January $1,2023.$

If they buy the home, the property taxes for the year are $$4,250.$

Disregard loan$-$related fees not mentioned above.

If the couple does not buy a home, they will put their money into their taxable annuity account, where they earn $4\mathrm{.}95$ percent annual interest.

Assume that all unstated costs are equal between the buy and rent options.

Help the Jacobys with their decisions by answering the following questions:

Note: Leave no answer blank. Enter zero if applicable.

a$.$ If the Jacobys decide to rent the home, what is their after$-$tax cost of the rental for the first year? $($include income from the annuity account in your analysis.$)$

Note: Round your intermediate calculations to the nearest whole dollar amount.