A PLAM Has the Following Terms: Loan Amount: $128,000,real Interest

A PLAM has the following terms: loan amount: $128,000,real interest rate: 5.50%, 30-year term,2.50 discount points,annual payments adjustments,monthly payments,observed inflation EOY1: -3%,observed inflation EOY2: 4%.What is the monthly payment for the second year?

A) $510.52
B) $714.59
C) $715.28
D) $704.97
E) $733.16