Tom and Beth have exactly 2 year left on their 5 year, 4.80% fixed rate mortgage term with an outstanding balance of $385,000. The current interest rate for a 2 year mortgage is 4.25%. Tom and Beth's mortgage documents state that the penalty charged on the mortgage will be the greater of either 3 months interest or the interest rate differential (IRD). Given the circumstances described, determine what penalty Tom and Beth will be charged by their current lender.

$4,235

$4,620

$11,358

$18,480