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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

  1. 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 third year?

    calculate the payment and the balance of the loan year by year

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