You Have Just Purchased a Home That Cost $250 Thousand

Multiple Choice

You have just purchased a home that cost $250 thousand.The nominal mortgage interest rate is 8% per annum,mortgage interest payments are tax deductible,and you are in a 30% tax bracket.The expected inflation rate is 4%.Maintenance and other expenses are 8% of the initial value of the house.What is the real user cost of your house?

A) $20 thousand
B) $24 thousand
C) $27 thousand
D) $30 thousand