Answer is B but how do you get there?

Problem 19 NorthRim Inc. (NRI), imports extreme condition outdoor wear and equipment from The Allofit Territories Company (ATC) located in Canada. With the steady decline of the U.S dollar against the Canadian dollar NRI is finding a continued relationship with ATC to be an increasingly difficult proposition. In response to NRI's request, ATC has proposed the following risk-sharing arrangement. First, set the current spot rate of C$1.20/8 as the base rate. As long as spot rates stay within 5% (up or down) NRI will pay at the base rate. Any rate outside of the 5% range, ATC will share equally unth RI the difference betueen the spot rate and the base rate. If NRI had a payable of C$100,000 due today and the current spot rate were C$1.17/S, how much would NRI owe in U.S. dollars? A. $85,837 B. $83,333V C. $85,470 D. $117,000