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A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 6% compounded monthly, with monthly payments. Suppose inflation

A bank makes a 30 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 6% compounded monthly, with monthly payments. Suppose inflation is 5% per year, compounded monthly. What is the real value of the 120th payment?

Please show and explain! Note: Answer is not 13,109.65

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