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A borrower is considering two loans. One is a 30 year partially-amortizing FRM for $250,000 with an interest rate of 5% that requires a $1,200

A borrower is considering two loans. One is a 30 year partially-amortizing FRM for $250,000 with an interest rate of 5% that requires a $1,200 monthly payment. The other loan is a 30 year interest-only FRM for $125,000 with an interest rate of 5%. Both loans require monthly payments. Which loan will have a higher balloon payment, and by how much? (Hint: find the balloon payment for both loans and take the difference.) A. Interest only, $520.83 B. Partially amortizing, $520.83 C. Interest only, $6,774.28 D. Partially amortizing, $6,774.28 E. Both loans will have the same balloon payment.

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