A $130,000 mortgage loan at 7.2% compounded monthly has a 25-year amortization.
a) What prepayment at the end of the first year will reduce the time required to pay off the loan by one year?
b) Instead of the prepayment in part a, what prepayment at the end of the 10th year will reduce the time required to pay off the loan by 1 year?
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