You have taken out a $500,000 loan with an original term of 30 years. The interest rate is 5.5% per annum, calculated monthly. You are making monthly payments. After 5 years interest rates rise to 7.5% without any warning. What are your new monthly payments? (Assume you wish the original maturity to be unchanged)

a.

$3,416.38

b.

$3,232.50

c.

$3,070.44

d.

$2,838.95