A PLAM Has the Following Terms: Loan Amount: $128,000,real Interest

question 9

Multiple Choice

A PLAM has the following terms: loan amount: $128,000,real interest rate: 5.50%, 30-year term,2.50 discount points,annual payments adjustments,monthly payments,observed inflation EOY1: -3%,observed inflation EOY2: 4%.What is the monthly payment for the second year?

• A) $510.52
• B) $714.59
• C) $715.28
• D) $704.97
• E) $733.16

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Definitions:

Aversive US

An unpleasant or harmful unconditioned stimulus used in classical conditioning to produce a negative response.

Appetitive CS

A conditioned stimulus that predicts the arrival of a desirable outcome, often used in research to study how anticipatory behaviors are learned.

Unconditioned Stimulus

A stimulus that innately and spontaneously evokes a reaction without any previous conditioning.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention.