An adjustable-rate mortgage resets every year. For the first year, the index rate is 3.3% and the margin is 2.9%. The loan is for $200,000 and has a term of 30 years. For the second year, the index is 4.2% when the rate resets. What is the new required monthly payment for year 2?

1,281.22

1,296.04

1,327.76

1,265.48

1,341.53