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You take a 100,000 loan with an interest rate of 4.8% convertible monthly for 10 years. Your options to repay the loan are: a) Level

You take a 100,000 loan with an interest rate of 4.8% convertible monthly for 10 years. Your options to repay the loan are:

a) Level monthly payments of 1,050.91; or b) Monthly payments of 916.38 for 5 years and monthly payments of 1,221.84 for the remaining 5 years.

What is the difference in the outstanding balance under option a) and option b) after 7 years?

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