Lynn graduated with a degree in finance last May and has just been hired by a large financial institution. Five years ago, Lynn and her husband Peter, an advertising executive, took out a 25-year mortgage with monthly payments and a quoted APR of 7% (with semi-annual compounding) for $300,000. They have just made their current monthly payment. Since Lynn is now earning a very good salary, she and Peter would like to pay part of their mortgage. They have decided to pay $150,000 right now. In addition, since interest rates have fallen, the bank has agreed to refinance their mortgage at a new APR of 5% with quarterly compounding. This would mean that Lynn and Peters monthly payments would fall. However, the couple is eager to pay their mortgage as quickly as possible. So, they decided to maintain their current monthly payments. Therefore, Lynn and Peter will be able to repay their mortgage in at most ______________________ . (Hint: first calculate the initial (current) monthly payments.)

Select one:

a. 67.28 months.

b. 122.27 months

c. 165.56 months

d. 75.45 months

e. 100.56 months