The manager of a manufacturing company knows that they will need a new machine in one of their factories. The new machine will cost them $12,500. The manager has determined that they can afford to pay 10% of the cost of the machine in cash. They can then finance the rest through a credit union. The credit union will charge 2% per year compounded monthly. How much are their monthly payments for 3 years?

a) $322.23

b) $337.20

c) $303.48

d) $403.34

e) $358.03

f) None of the above.