Emina took out a 5/1 variable-rate mortgage for $120,000. The interest rate
for the first period was fixed at 5.25%, and the loan was amortized over 30
years. At the end of the initial loan period, the interest rate was 6.75%, plus a
1.5% margin. What will the unpaid balance on her mortgage be after her initial
period expires?
A. 102,164.09
B. 123,740.97
C. 113,739.09
D. 110,579.39