Assume you borrow a PLAM of $$120,000$ for $30$ years. If real interest rate is $4\mathrm{.}75\%$ and inflation is expected to be $4\%$ in year $2,$ what is the amount required to payoff the entire loan balance at the end of year $2?$

$118,902$

$123,455$

$119,859$

$124,481$