Chase has a $42,500 line of credit which charges an annual percentage rate of prime rate plus 5%

Subject:FinancePrice:3.87 Bought7

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Chase has a $42,500 line of credit which charges an annual percentage rate of prime rate plus 5%. His starting balance on June 1 was $2,550. On June 4, he borrowed $5,300. On June 9, Chris made a payment of $800, and on June 17, he borrowed $5,600. If the current prime rate is 10%, what is his new balance?

a. $12,766.83

b. $12,850.00

c. $12,050.59

d. $12,598.99