\"A borrower is interested in comparing the monthly payments ontwo otherwise equivalent 30 year FRMs. Both loans are for $100,000and have a 3.35% interest rate. Loan 1 is fully amortizing, whereas Loan 2 has negative amortization with a $120,000 balloon paymentdue at the end of the life of the loan. How much higher is themonthly payment on loan 1 versus loan 2? (Hint: calculate bothpayments and take the difference. Only the future values of theloans are different. Round your answer to two decimal places.)\"
