Kurt's Music Has a Line of Credit with a Local

Kurt's Music has a line of credit with a local bank that permits it to borrow up to $650,000 at any time.The interest rate is .64 percent per month.The bank charges compound interest and also requires that 2 percent of the amount borrowed be deposited into a non-interest-bearing account.How much interest will the firm pay if it needs $200,000 of cash for three months to pay its operating expenses?

A) $3,943.50
B) $3,949.21
C) $4,017.02
D) $3,864.63
E) $3,902.11