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the numbers i have are incorrect, as well as if year 0 payment at $459 and year 1 at $487. A price level adjusted mortgage
the numbers i have are incorrect, as well as if year 0 payment at $459 and year 1 at $487.
A price level adjusted mortgage (PLAM) is made with the following terms Amount = $96,100 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. Required: a. Compute the payments at the beginning of each year (BOY) b. What is the loan balance at the end of the fifth year? c. What is the yield to the lender on such a mortgage? Complete this question by entering your answers in the tabs below. Required A Required B Required C Cmnithe numantes the haninninn af aar waar IRINA in intermaristalline Baunan final BOY Balance Year 0 $ 431 Year 1 $ 457 Year 3 $ 485 Year 4 Year 5 Step by Step Solution
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