Question: Suppose that you borrow $25,000 at 12% compounded monthly over five years. Knowing that the 12% represents the market interest rate, you realize that the

Suppose that you borrow $25,000 at 12% compounded monthly over five years. Knowing that the 12% represents the market interest rate, you realize that the monthly payment in actual dollars will be $556.11. If the average monthly general inflation rate is expected to be 0.5%, determine the equivalent equal monthly payment series in constant dollars.

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