Q2. You are offered a Price level adjusted mortgage (PLAM) with the following terms: Amount: $400,000 - Interest Rate: 5.60% - Term: 30 years with monthly payments - Expected Inflation: 4.00% per year A. What is the adjusted loan balance at the end of Year 1? (5 points) B. What is the monthly payment in year 2? (5 points) C. What is the adjusted loan balance at the end of year 2? (5 points) Q2. You are offered a Price level adjusted mortgage (PLAM) with the following terms: Amount: $400,000 - Interest Rate: 5.60% - Term: 30 years with monthly payments - Expected Inflation: 4.00% per year A. What is the adjusted loan balance at the end of Year 1? (5 points) B. What is the monthly payment in year 2? (5 points) C. What is the adjusted loan balance at the end of year 2? (5 points)