A PLAM has the following terms: loan amount: $140,000, real interest rate: 5.50%, 30-year term, 2.50 discount points, annual payments adjustments, monthly payments, observed inflation EOY1: 3%. What is the monthly payment for the first year

1)

$1076.47

2)

$794.90

3)

$775.03

4)

$553.17

5)

$826.81