In January, Zelda Borrows $7,000 from Her Mother for Moving

Multiple Choice

In January, Zelda borrows $7,000 from her mother for moving expenses and clothes for starting her new job after graduating from college.She told her mother she would pay her 9 percent interest on the money but made no payments in the current year.If the applicable federal interest rate is 5 percent, how much interest income must Zelda's mother recognize?

A) 0
B) $233
C) $350
D) $420