Luis took a fixed-rate mortgage loan 5 years ago for $120,000 at a 7% interest rate for 15 years (monthly compounding loan). Now a new lender offers him a loan at 5% for 10 years, with a loan amount being $92,895, which is exactly the outstanding loan balance of the existing loan. If Luis refinances the existing loan, a prepayment penalty of 3% will be applied. Also, the new loan has a loan fee of $3,000. If Luis plans to hold the new loan for 10 years and he has to pay the refinancing fees out of his pocket, what is the effective interest rate for the new loan? 

a.) 6.41% 

b.)6.62% 

c.)6.26% 

d.) 6.12%