How much need to borrow if principal payments is given


Bill purchased a house for $70,000. He put $25,000 down and agreed to pay the rest off over the next 15 years in 15 equal payments that include principal payments plus 12% compound interest on the unpaid balance. What will these equal payments be?

a) How much does he need to borrow. (Should be $45,000)

b) How much will the 15 equal payments be?

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Finance Basics: How much need to borrow if principal payments is given
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