Annuity payments. Mr. Bill S. Preston, Esq., purchased a new house for $90,000. He paid $30,000 upfront and agreed to pay the rest over the next 10 years in 10 equal annual payments that include principal payments plus 9% compound interest on the unpaid balance. What will these equal payments be?
a. Mr. Bill S. Preston, Esq., Purchased a new house for $90,000 and paid $30,000 upfront. How much does he need to borrow to purchase the house?
$_______.
b. If Bill agrees to pay the loan over the next 10 years in 10 equal end-of-year payments plus 9% compound interest on the unpaid balance, what will these equal payments be?
$_______.