Use the following data for the next 6 questions. A price level adjusted mortgage (PLAM) is made with the following terms: Amount: = 115,000 Interest Rate = 4% Points = 4 Term = 15 years Inflation rate year 1 is 9%, and in year 2 is 12%.

34. What is your first year loan payment? A) 684.59 B) 816.61 C) 850.64 D) 1,455.03

35. What is your loan balance at the end of year one, after the inflation adjustment? A) 104,916.83 B) 109,288.36 C) 115,723.95 D) 119,124.31

36. What is your second year loan payment? A) 927.20 B) 1,139.47 C) 1,204.00 D) 1,455.03

37. What is your loan balance at the end of year two, after the adjustment for inflation? A) 101,100.00 B) 108,404.87 C) 117,873.95 D) 126,162.34

38. Assuming that you sell the house at this point (end of year 2) what is the yield to the lender expressed as an APR? A) 9.00% B) 12.00% C) 14.25% D) 15.75%

39. Assuming that you sell the house at this point (end of year 2) what is the yield to the lender expressed as an EAY? A) 9.38% B) 12.68% C) 15.22% D) 16.94%