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 end of the first year?

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 end of the first year