You bought a house with a 15-year mortgage with loan size $100,000 and interest rate 4%. Assuming the total transaction cost is $4,000 and your marginal income tax rate is 30%. What is the annual effective cost of this loan after-tax if your loan will be outstanding for 1 month?

Select one:

a. 5.92%

b. 529.2%

c. 4%

d. 52.92%