V5 Required: Help the Jacobys with their decisions by answering the following questions: (Leave no answerblank. Enter zero if applicable.)a. If the Jacobys decide to rent the home, what is their after-tax cost of the rental for the first year? (include income from theannuity account in your analysis.) (Round your intermediate calculations to the nearest whole dollar amount.)After-tax cost Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a job inbusiness consulting while Meagan accepted a job in computer programming. Meagan inherited $74,000from her grandfather, who recently passed away. The couple is debating whether they should buy or renta home. They located a rental home that meets their needs. The monthly rent is $3,400. They also founda three-bedroom home that would cost $364,000 to purchase. The Jacobys could use Meagan'sinheritance for a down payment on the home. Thus, they would need to borrow $290,000 to acquire thehome. They have the option of paying two discount points to receive a fixed interest rate of 4.50 percenton the loan or paying no points and receiving a fixed interest rate of 5.70 percent for a 30-year fixed loan.Though anything could happen, the couple expects to live in the home for no more than five years beforerelocating to a different region of the country. Derek and Meagan don't have any school-related debt, sothey will save the $74,000 if they don't purchase a home. Also, consider the following information:• The couple's marginal tax rate is 20 percent.Regardless of whether they buy or rent, the couple will itemize their deductions and have the ability todeduct all of the property taxes from the purchase of a residence.If they buy, the Jacobys would purchase and move into the home on January 1, 2021.• If they buy the home, the property taxes for the year are $4,750.• Disregard loan-related fees not mentioned above.If the couple does not buy a home, they will put their money into their savings account, where theyearn 4.95 percent annual interest.Assume that all unstated costs are equal between the buy and rent options.Required: Help the Jacobys with their decisions by answering the following questions: (Leave no answerblank. Enter zero if applicable.)

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Marginal Tax Bracket -
Marginal tax brackets reflect the tax brackets that will apply to an…