Jarrod's Canada Student Loans totalled $9400 by the time he graduated from the Oil and Drilling program at the Northern Alberta Institute of Technology College in May. He arranged to capitalize the interest on November 30 and to begin monthly payments of $135 on December 31. Jarrod elected the floating rate interest option (prime plus 2.5%). The prime rate stood at 2.75% on June 1, dropped to 2.5% effective September 3, and then increased by 0.25% on January 17. Calculate the grace period interest and the balance of the loan on December 31.

a) $240.72 interest
$9,546.32 balance

b) $241.70 interest
$9,564.32 balance

c) $241.70 interest
$9,550.12 balance

d) $243.80 interest
$9,546.32 balance

e) $241.70 interest
$9,546.32 balance