Tom takes a loan of $60,000 at 4 percent annual interest to purchase a property worth $100,000. He earns an annual income of $10,000 after expenses but before interest and income taxes are deducted. If the income tax rate is 30 percent, then the leveraged return on the real estate investment is _____.

Options available

a. 10%

b. 13%

c. 19%

d. 30%

e. 25%