13. A young couple has just arranged an interest only loan for $8,500 from their bank. The proceeds of the loan will be used to finance renovations to their condominium. The renovations are expected to last three months. Once the renovations are completed, they plan to refinance their mortgage and use the proceeds to pay off the short-term interest only loan. The interest only loan bears interest at the prime rate plus 1% per annum, compounded annually and calls for monthly payments of interest only. If the prime rate is 3% per annum, compounded annually, for the first month of the loan and 3.5% per annum for the second month, calculate the interest payable on the loan for these two months. (1) $27.83;$31.24 (2) $24.40;$20.96 (3) $29.23;$33.97 (4) $22.98;$24.62