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A PLAM is made with the following terms. First, $175,000 is lent out. The initial contract rate is 6%. The term is 30 years. Monthly
A PLAM is made with the following terms. First, $175,000 is lent out. The initial contract rate is 6%. The term is 30 years. Monthly payments are to be reset at the beginning of each year. Now, assume that inflation increases at the rate of 6% per year for the next 5 years. What monthly payment would the borrower owe during Year 2? Round your answer to two decimal places.
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