CIBC Approved a $10 000 Personal Line of Credit on a Demand

Multiple Choice

CIBC approved a $10 000 personal line of credit on a demand basis to Tara, who takes an advance of $2240 on 1st of every month to settle her monthly budget. She settles her loan when she receives her pay on 15th of every month. Interest at the rate of prime (3%) plus 2.75% is charged to the account at the bank on the 15th of each month. What is Tara's payment each month to settle the loan?

A) $2245.29
B) $5.29
C) $2240
D) $2368.80
E) $2263.63