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QUESTION 10 A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs. Both loans are for $100,000 and have

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QUESTION 10 A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs. Both loans are for $100,000 and have a 7.00% interest rate. Loan 1 is fully amortizing, whereas Loan 2 han negative amortization with a $150,000.00 balloon payment due at the end of the life of the loan. How much higher is the monthly payment on loan 1 versus loan 22 (Hint calculate both payments and take the difference. Only the future values of the loans are different) Round your answer to two decimal places

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