Suppose you are buying your first home for $120,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

Select the correct answer.

a. $663.67

b. $650.47

c. $676.87

d. $657.07

e. $643.87