$2$

A bank makes a $30$ year Fully Amortizing FRM for $$1,000,000$ at an annual interest rate of $4\mathrm{.}13\%$ compounded monthly, with monthly payments.

Suppose inflation is $2\%$ per year, compounded monthly. What is the real value of the $20$th payment? Please show how to do this on a BA II Plus Calculator $!$

A$)$ $$3,263\mathrm{.}51$

B$)$ $$4,527\mathrm{.}37$

C$)$ $$4,690\mathrm{.}55$

D$)$ $$4,849\mathrm{.}40$