1. Mr. Bill S Preston Esq. purchased a new house for $140,000. He paid $15,000 upfront and agreed to pay the rest over the next 15 years in 15 equal annual payments that include principal payments plus 8 percent compound interest on the unpaid balance. What will these equal payments be?
a. Mr Bill purchased a new house for $140,000 and paid $15,000 upfront. How much does he need to borrow to purchase the house?
2. To Pay for your child's education, you wish to have accumulated $13,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of year year. If the bank is willing to pay 9 percent compounded annually, how much must you deposit each year to obtain your goal? (Round to nearest cent)