Which loan amount is associated with Gail's second mortgage?

The correct loan amount associated with Gail's second mortgage is $130,000. In a real estate context, a second mortgage is typically a loan that is taken out in addition to the first mortgage, using the home as collateral. The amount of the second mortgage commonly reflects the equity that exists in the home after accounting for the amount owed on the first mortgage.

This means that if Gail has a certain amount of equity in her home after paying off part of her first mortgage, the second mortgage amount would likely be calculated based on that equity. Additionally, in many cases, second mortgages tend to be smaller amounts than primary mortgages, as they are subordinate to the first mortgage and typically carry higher interest rates due to the increased risk to lenders.

The other amounts provided do not fit the typical structure associated with second mortgages when considering standard home equity scenarios. Thus, $130,000 is the logical choice for the second mortgage amount.