Using a $400,000, 30-year monthly payment Priced Level-Adjustable Mortgage, assuming the "real" loan rate is

5%

, with inflation rates of

5%,6%

, and

7%

for years 1,2 , and 3 , respectively. It is assumed that adjustments are made annually in the outstanding balance. What is the unpaid mortgage at the beginning of the 4 th year?\

$434,727.96

\

$461,361.27

\ None of the possible numerical answers given is correct\

$454,182.56

\

$444,469.68

Using a $400,000,30-year monthly payment Priced Level-Adjustable Mortgage, assuming the "real" loan rate is 5%, with inflation rates of 5%,6%, and 7% for years 1,2 , and 3 , respectively. It is assumed that adjustments are made annually in the outstanding balance. What is the unpaid mortgage at the beginning of the 4 th year? $434,727.96 $461,361.27 None of the possible numerical answers given is correct $454,182.56 $444,469.68