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A price level adjusted mortgage ( PLAM ) is made with the following terms: Amount = $ 9 6 , 8 0 0 Initial interest

A price level adjusted mortgage (PLAM) is made with the following terms:
Amount =$96,800
Initial interest rate =4 percent
Term =30 years
Points =6 percent
Payments to be reset at the beginning of each year.
Assuming inflation is expected to increase at the rate of 6 percent per year for the next five years:
Required:
a. Compute the payments at the beginning of each year (BOY).(Answers in the photo are correct, just need answers to b and c.)
b. What is the loan balance at the end of the fifth year?
c. What is the yield to the lender on such a mortgage?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the payments at the beginning of each year (BOY).
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
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