Price Level Adjusted Mortgage (PLAM) of $55,000 loan is made for 30 years. Nominal interest rate is equal to 12% and payments are made monthly. The lender and borrower agreed that loan balance will be indexed to the CPI (Consumer Price Index) and adjusted annually. If the CPI is equal to 12% during the first year and 15% during the second year, what is the value of the each monthly payment during the third year? (Answer is rounded)

Your answer:

895.73

696.99

594.64

728.67

621.67