A Home Buyer Signed a 20-Year, 8% Mortgage for $72,500

Multiple Choice

A home buyer signed a 20-year, 8% mortgage for $72,500. Given the following information, how much should the annual loan payments be? Present value of $1 PV_IF = .215
Future value of $1 FV_IF = 4.661
Present value of annuity PV_IFA = 9.818
Future value of annuity FV_IFA = 45.762

A) $1,584
B) $7,384
C) $15,555
D) $15,588