A price level adjusted mortgage (PLAM) is made with the following terms:

Amount=$95,000

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:

1. Compute the payments at the beginning of each year (BOY).

2. What is the loan balance at the end of the fifth year?

(Please show how to plug in excel with formulas, thank you)