Benny Fitz bought a house that costs $500,000 and appraised (was valued) at $495,000. Since the loan has at 92% LTV (Loan to Value), the lender demanded that Benny purchase private mortgage insurance (PMI) to insure the portion of the loan over 80% LTV. Suppose 5 years later, Bennys mortgage balance is $450,000. However, Benny defaults and his house sells for $385,000 in a foreclosure auction. How much will the PMI pay to Bennys lender? Assume PMI is still in place at the time of foreclosure.

$60,000

$7,800

$65,000

$11,000

$59,400