XYZ Corporation Borrowed $100,000 for Six Months from the Bank

Multiple Choice

XYZ Corporation borrowed $100,000 for six months from the bank. The rate is prime plus 2 percent. The prime rate was 8.5 percent at the beginning of the loan and changed to 9 percent after two months. This was the only change. How much interest must XYZ corporation pay?

A) $2,476
B) $5,417
C) $18,212
D) $21,500