Janet enters into an interest rate swap with a notional of $10 million where she receives a fixed rate of 5% and pays a floating rate based on 12-month LIBOR for 5 years Payments on the swap are exchanged annually. Immediately following the third payment, Janet calculates the market value of her swap to be $685,000 If the two-year spot rate is 1.5% at that time, what will Janet receive or pay at the next payment date?

A. 240,000

B. 335,000

C. 350,000

D. 359,000

E. 385,000