Jerry and Ann Paid the Following Amounts During 2013: Interest $\$ 1,500$

Jerry and Ann paid the following amounts during 2013: Interest on automobile
loan
$\$ 1,500$
Interest on bank loan (proceeds were used to purchase
municipal
bonds)
$\$ 5,000$ Qualified home mortgage
interest
$\$ 3,000$ What is the maximum amount they can use as interest expense in calculating itemized deductions for 2013?

A) $3,000
B) $3,150
C) $4,500
D) $8,000
E) None of the above