A price level adjusted mortgage plam is made with the, Financial Management

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A price level adjusted mortgage plam is made with the

A price level adjusted mortgage (PLAM) is made with the following terms:

Amount=95000, Initial interest rate=4%, Term=30 yrs, Points = 6%.

Payments are to be adjusted at the beginning of each year.

Assuming inflation is expected to be 6% per year for the next five years, what is the payment at the beginning of year 3?

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Financial Management: A price level adjusted mortgage plam is made with the

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