Matt plans to ask $200,000 loan for his business. Bank suggests two options for financing the loan: 1. a 20 year mortgage at 4% APR or; 2. a 30 year mortgage at 8% APR.

i) What is the difference in monthly payments for the first 20 years between the two suggested options?

ii) If Matt would like to prepay the mortgage (pay the remainder of the loan in a single payment before maturity), how much does he need to pay at the end of 15th year for both options? Assume monthly compounding.