Harjap completed his program at Nova Scotia Community College in December. On June 30, he paid all of the interest that had accrued (at prime plus 2.5%) on his $5800 Canada Student Loan during the six-month grace period. He selected the fixed-rate option (prime plus 5%) and agreed to make end-of-month payments of $95 beginning July 31. The prime rate was 2.7% at the beginning of the grace period and rose by 0.5% effective March 29. On August 13, the prime rate rose another 0.596. The relevant February had 28 days.

a. What amount of interest accrued during the grace period?

b. Calculate the total interest paid in the first three regular payments, and the balance owed after the third payment. Remember that the fixed-rate option means that the student is locking in the interest rate at the time the repayment schedule begins.