Question: A bank makes a 30 year Fully Amortizing FRM for $1,600,000 at an annual interest rate of 5% compounded monthly, with monthly payments. Suppose inflation

A bank makes a 30 year Fully Amortizing FRM for $1,600,000

A bank makes a 30 year Fully Amortizing FRM for $1,600,000 at an annual interest rate of 5% compounded monthly, with monthly payments. Suppose inflation is 2% per year, compounded monthly. What is the real value of the 120th payment

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