The Bhatts purchased a new home for $235,000 with a down payment of $49,000. They obtained a 20-year adjustable rate mortgage with the following terms. The interest rate is based on the one-year Treasury bill rate, which is currently at 2.5%, and the add-on rate, which is 1.5%. The initial rate period is 5 years, and thereafter the interest rate is adjusted once a year and a new monthly mortgage payment is calculated. Determine the Bhatts' initial monthly payment for principal and interest.

$1127.12

$1158.34

$1023.60

$1097.38