Calculate the prepayment penalty $($greater of three months interest or interest rate differential $($A$+$B$-$C$)$ we have discussed in class. this is just a review question!

Initial loan terms:

monthly interest rate: $\mathrm{.}005$

Amortization: $300$ months

Term of loan: $60$ months

Loan amount: $$500,000$

Date of prepayment: $20($immediately following $20$th payent$)$

Penalty calculation monthly rate: $\mathrm{.}0025$