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You recently obtained a loan to purchase a $275,000 home; the loan terms included annual payments for a 25-year term at an interest rate of 4 percent. What is the total amount of interest that you will pay on the loan? Use time value of money factors with at least four decimal places and then round your final answer to the nearest whole dollar. 165,082 (with margin: 0) Tip: Since annual payments are involved, it will require using an annuity time value of money table; further, since the annuity relates to an event that is happening now (i.e. the loan to purchase the house) then the present value of annuity table should be used. So, divide the $275,000 by the appropriate PVa factor ( i=4%,n=25 ) to determine the annuity (i.e. the annual loan payment). Next, multiply that loan payment amount by 25 (since the payment is made that many times and includes the interest on the loan as well as a portion of the amount borrowed). Finally, from that total subtract the amount that was originally borrowed to arrive at the total amount of interest paid on the loan