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You are contemplating a hotel investment and are exploring two different financing options. Loan 1 is a 10-year interest only balloon loan with a loan

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You are contemplating a hotel investment and are exploring two different financing options. Loan 1 is a 10-year interest only balloon loan with a loan amount of $24,000,000 and annual interest rate of 5.25%. Loan 2 is a 10-year balloon loan with a 30- year amortization schedule and monthly payments; the loan amount is $24,000,000 and the annual interest rate is 5.25%. At the end of 10 years, what is the difference between the outstanding balances on Loan 1 and Loan 2

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