A PLAM Has the Following Terms: Loan Amount: $140,000,real Interest

A PLAM has the following terms: loan amount: $140,000,real interest rate: 5.50%, 30-year term,2.50 discount points,annual payments adjustments,monthly payments,observed inflation EOY1: 3%.What is the monthly payment for the first year?

A) $1076.47
B) $794.90
C) $775.03
D) $553.17
E) $826.81