A borrower is considering three competing mortgage loan offers from her bank, The amount borrowed on the mortgage is $100,000 with monthlv compounding,

The rate on the ARM resets at the end of Year 3. Assuming the ARM is reset at 5.500% (i.e., the remaining balance on the loan will now be repaid with 5.500% nominal annual interest), which of the three loans will have the smallest monthly payment after the rate reset at the end of Year 3?

A.30-year ARM

B.15-year fixed-rate loan

C.30-year fixed-rate loan