E VALUE OF MONEY HIER APPLICATIONS) . You have arranged a 30-year mortgage with a 14% annual interest rate in order to purchase a $90,000 home. You are able to reduce the amount of money you need to borrow by making a down payment of $20,000, but you must borrow the rest. You plan to make only one payment per year. What will your annual payment be? 2. Consider again the mortgage from Problem #1. Of the first payment made, how much of the payment is to cover the interest payment and how much is for payment on the principal