You Take a Fixed-Rate Mortgage for $120,000 at 6

Multiple Choice

You take a fixed-rate mortgage for $120,000 at 6.25% for 30 years,monthly payments.At the end of the second year,you unexpectedly inherit $16,000 from your now-favorite aunt.You decide to apply this $16,000 to the principal balance of your loan.What is the balance of the mortgage at the end of year two
After the extra payment?

A) $103,772
B) $117,097
C) $86,095
D) $101,097
E) none of the above