Jim Thomas borrows $86,000 at 10 percent interest toward the purchase of a home. His mortgage is for 20 years. (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)

a.	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 get a reasonably accurate answer.)

Annual payments

$

b.	How much interest will he pay over the life of the loan?

Amount of interest

$

c.	How much should he be willing to pay to get out of a 10 percent mortgage and into a 8 percent mortgage with 20 years remaining on the mortgage? Suggestion: Find the annual savings and then discount them back to the present at the current interest rate (8 percent).

Amount to be paid

PLEASE USE FINNACIAL CALCULATOR !!! ITS BEING DONE ON CONNECT AND ROUND FINAL NUMBERS TO THE NEAREST WHOLE DOLLAR.