BE10-6 Assume that you qualify for a $25,000 loan from the Canada Student Loans Program to help finance your education. You are considering whether to repay this loan on graduation with a fixed interest rate of prime plus 5% or a floating interest rate of prime plus 2.5%. Assuming you start repaying your loan immediately upon graduation, informa- tion related to your loan options follows: Amount of loan Prime interest rate assumed Number of months to repay loan Monthly instalment payment Total interest payable over life of loan Fixed Interest Rate $25,000 2.75% 120 months $300 $11,003 Floating Interest Rate $25,000 2.75% 120 months $268 $7,188 (a) Identify the advantages and disadvantages of each interest rate option. (b) Explain which option you think is best for you and why