You have taken out a $120,000 loan with an original term of 30 years. The interest rate is 8% per annum, calculated monthly. You are making monthly payments. After 3 years interest rates fall to 5.5% without any warning. What are your new monthly payments? (Assume you wish the original maturity to be unchanged)

a. $880.52 b. $905.14 c. $692.41 d. $681.35