Larry Davis borrows $80,000 at 14 percent interest toward purchasing a home. His mortgage is for 30 years. (Assume annual payments )

(a) How much will his annual payments be?

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

(c) How much should he be willing to pay to get out of a 14 percent mortgage with (25 years remaining on the mortgage) and into a 12 percent, 15-year mortgage? Assume current interest rates are 10 percent.