9. Price Level Adjusted Mortgage (PLAM) under High Inflation: A PLAM is originated for $250,000 with monthly payments at 3% for 25 years. At the end of the first year, the inflation rate is calculated to be 125%, at the end of the second year the inflation rate is lower and 100%. a. Find the first three years' payments. [$1185.53; $2667.44; $5334.88] b. If the inflation rate at the end of the third year is 85%, calculate the EIR for a 3 year holding period. [74.337%]

Use financial calculator to find the answer