Under his health care plan, Tran has a deductible of $1,200, a coinsurance of 20%, and an out-of-pocket limit that matches the federal maximum of $6,850 (in 2016). Tran has significant surgery for which his bill is $5,000, hospitalization for which his bill is $40,000, and home health care after he leaves the hospital which comes to $4,000. How much of the hospital bill will Tran pay, assuming he pays the three bills in the order mentioned?
A.$40,000
B.$6,850
C.$3,425
D.$4,890