5. Franklin Company obtained a $120,000 line of credit from the State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 3% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Borrowing is shown as a positive amount and repayments are shown as negative amounts indicated by parentheses.

	Amount Borrowed (Repaid)					Prime Rate for the Month
1-Jan		$	36,000					4.0	%
1-Feb			(13,000)					4.5	%
1-Mar			36,000					5.0	%

Based on this information alone, the amount of interest expense recognized in March would be closest to: (Do not round intermediate calculations. Round your answer to the nearest whole number.)

a) $221

b) $393

c) $197

d) $246