Your brother's business obtained a 30-year amortized mortgage loan for $125,000 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 Year 1?

a. $8,012.99

b. $8,709.78

c. $7,229.11

d. $10,800.12

e. $8,100.09