If you have a 30-year fixed loan of $100,000 at 4.5% interest and we experience 11% inflation over the next 30 years, what is the effective cost of the loan today?
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Answer to 03-14-2011 problem:
(N=180, I=6, PV=190,000, FV=0) PMT = 1603.33
Amortize for payments 1-85
Balance = $121,012.07