How much will his annual payments be

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Problem: Larry Davis borrows $150,000 at 4 percent interest toward the purchase of a home. His mortgage is for 15 years.

Required:

Question 1: How much will his annual payments be? (Although home payments are usually on a monthly basis, we shall do our analysis on an annual basis for ease of computation. We will get a reasonably accurate answer.)

Question 2: How much interest will he pay over the life of the loan?

Reference no: EM132421304

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