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Posted on Jul 27, 2024

Eagles Corporation takes a commercial Price Level Adjusted Mortgage (PLAM) loan for $25,000,000. The loan term is for 20 years with end of month payments

Eagles Corporation takes a commercial Price Level Adjusted Mortgage (PLAM) loan for $25,000,000. The loan term is for 20 years with end of month payments and a rate of 4.8%. Annual inflation adjustment applicable in determining payments for years 2 and 3 are expected to be 7% and 9% respectively.

What is the monthly payment for years 2 and 3?

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