Jim has a house payment of $2,000 per month of which $1,700 is deductible interest and real estate taxes with the remaining $300 representing a repayment of the principal balance of the note. Jim’s marginal tax rate is 30 percent. What is Jim’s after-tax cost of his house payment? 

a. $600 

b. $540 

c. $1,490 

d. $1,460 

e. Some other amount