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A PLAM has the following terms: loan amount: $225,000, real interest rate: 5.00%, 30- year term, 2.50 discount points, annual payment adjustments, monthly payments. The
A PLAM has the following terms: loan amount: $225,000, real interest rate: 5.00%, 30- year term, 2.50 discount points, annual payment adjustments, monthly payments. The payment in year one is $2,081.49 and the payment in year two is $2,195.57. What is the inflation rate at the end of year one?
Please explain solution without using excel and if the discount point affects the inflation rate.
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