A U.S. company purchases a 90-day certificate of deposit from a Singapore bank on May 15, when the spot rate is $0.72/S$. The certificate has a face value of S$1,000,000 and pays interest at an annual rate of 3 percent. On August 13, the certificate of deposit matures and the company receives principal and interest of S$1,007,500. The spot rate on August 13 is $0.69/S$. The average spot rate for the period May 15 August 13 is $0.70/S$. The companys accounting year ends December 31. Interest income on the investment is reported at:

A. $7,500

B. $5,400

C. $5,250

D. $5,175