Problem 9-44 Loan repayment [L04] Larry Davis borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is for 25 years 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 will get a reasonably accurate answer.) (Do not round intermediate calculations Round your final answer to 2 decimal places.) b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Input variables: $80,000 Mortgage amount Interest rate Term of mortgage 14 percent 25 years (assume annual payments) Solution and Explanation: Annual payment $11,639.87 b. Total interest over life of loan $210,996.82