Scenario: John Is Looking to Buy a House in Bozeman

Scenario: John is looking to buy a house in Bozeman. He has about $120,000 in savings, and the house he is interested in costs $300,000. When he approaches Boze Bank, the same bank at which all of his five brothers have accounts, he learns that he can borrow at a nominal interest rate of 5 percent. Inflation is 2 percent for 2 years after he buys the house and then increases to 3 percent. Assume that Boze Bank is the only bank in Bozeman and John's five brothers contribute a significant amount to the bank's total savings.
-Refer to the scenario above.Just before John purchases the house,the sales tax on big ticket items goes up by 5 percent.How might this affect John?

A) John might have to take longer to pay off his house.
B) John might be less interested in buying the house.
C) John might have to pay higher interest.
D) All of the above could be true.