When you purchased a house, you took out a $500,000, 30-year annual-payment mortgage with an interest rate of 6% per year. You have now decided to pay the mortgage off by repaying the outstanding balance. Calculate the annual payment.

What is the payoff amount if:

a. You decided to pay off the mortgage immediately after the 20 th payment is made. b. You decided to pay off the mortgage immediately before the 20 th payment is due.