Your firm plans to buy a warehouse for $100,000.  The bank offers you a 30-year mortgage with equal annual payments and an interest rate of 8% per year.  The bank requires that your firm pay 20% of the purchase price as a down payment, so you can borrow only $80,000. 

• Calculate the annual loan payment and how much interest you pay over the life of the mortgage.

Answer rating: 100% (QA)

To calculate the annual loan payment for a mortgage with equal annual payments you can use the ... View the full answer