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A price level adjusted mortgage (PLAM) is made with the following items. . Amount = $160,000 Initial interest rate = 3% Term = 15 years

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A price level adjusted mortgage (PLAM) is made with the following items. . Amount = $160,000 Initial interest rate = 3% Term = 15 years Points = 4 percent Payments to be reset at the beginning of each year. Assuming inflation is 14 percent the first year and 9 percent second year. . . What is the beginning loan balance for year 2? O $172,622.85 O $155,418.98 O $142,586.22 O $151,423,55

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