At the age of 30, Jasmine started a retirement account with $50,000, which compounded interest semi-annually with an APR of 1.75%. She made no further deposits. After 25 years, she decided to withdraw 50% of what had accumulated in the account so that she could contribute toward her grandchild's college education. She had to pay a 10% penalty on the early withdrawal. What was her penalty?
A. $3,764.72
B. $3,864.72
C. $3,564.72
D. $3,664.72