Jalissa's mom purchased coffee from the local coffee shop. The first cup of coffee was $3.95. Each refill is $1.25. She also decided to get a bagel for $2.50. If Jalissa's mom had 2 refills and a $0.50 discount as part of the rewards program, how much did she spend at the coffee shop?

$7.20
$7.45
$8.45
$9.45