Question: Assume we have a PLAM for a $ 4 5 0 , 0 0 0 mortgage with a 3 0 - year term and monthly

Assume we have a PLAM for a $450,000 mortgage with a 30-year term and monthly payments. The real loan rate is 4%, with inflation rates of 6%,5%, and 4% for years 1,2, and 3, respectively. The inflation adjustments to the loan balance are assumed to be made annually. What is the loan balance at the beginning of year 2?
Group of answer choices
None of the given answers
472,214
468,600
472,412
476,832

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