Given the task definition and input, reply with output. You are given a math word problem and you are supposed to make use of mathematical concepts like probability, combinatorics, linear equations, sequences/series, or simple operators like addition, subtraction, division, or multiplication to answer the given question. Choose the best option from the 5 given options and report that option.

Question: A company, Chauncy Co., has an annual travel budget of $54,000. The accounting department estimates that transportation expenses will increase 5 percent in the coming year, and nontransportation travel expenses will increase by 15 percent in the coming year. Last year, Chauncy Co. spent $19,500 on transportation-related expenses, and $35,000 on nontransportation travel expenses. If the annual travel budget does not increase this year, and if the accounting department’s estimates are correct, how far over the annual travel budget will expenses be this year?

 Option A: Expenses will not go over the budget.

 Option B: $500

 Option C: $4,225

 Option D: $6,725

 Option E: $60,725

Option D