Nellie Bertram has $$50,000$ in an investment paying $10\%$ annual interest. Each year, she incurs a $$600$ cash expense relating to the investment. If Nellie$$s marginal tax rate is $20\%,$ which of the following statements is TRUE?

Group of answer choices

If the interest is tax$-$exempt and the expense is not deductible, Nellie's annual after$-$tax cash flow is $$5,000.$

None of these choices are true.

If the interest is taxable but the expense is not deductible, Nellie's annual after$-$tax cash flow from the investment is $$3,400.$

Nellie's annual after$-$tax cash flow from this investment is $$3,520.$