Alex took out a 7/1 variable-rate mortgage for $140,000. 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 his mortgage be after his initial

period expires?

a. $123,740.97

b. $126,805.34

c. $123,739.09

d. $122,773.09