You are thinking of purchasing a house. The house costs $351,000. You have $40,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has
an interest rate of 11% per year. What will be your annual payment if you sign this mortgage?
a. $18,901.26
b. $20,791.38
c. $22,870.52
d. $25,157.57