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Andre has just inherited some money and would like to pay off the balance of his mortgage (200,000). His mortgage rate is 3.4% and there

Andre has just inherited some money and would like to pay off the balance of his mortgage (200,000). His mortgage rate is 3.4% and there are 64 months remaining on the term. A 6 year term now has a rate of 3.2%. A 5 year term now has a rate of 3%. Calculate the penalty he would pay using the rate differential method?

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