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Assume we have a $500,000 mortgage at 3.5% original interest rate, with a 30-year term and monthly payments. The interest rate can be adjusted at

Assume we have a $500,000 mortgage at 3.5% original interest rate, with a 30-year term and monthly payments. The interest rate can be adjusted at the end of each year, and we assume the rate increases 0.15% after the first year and another 0.5% after the second year. What is the loan balance at the end of the second year?

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