Question: On December 31, Beth Klemkosky bought a yacht for $70,000. She paid $20,000 down and agreed to pay the balance in 12 equal annual installments that include both the principal and 8 percent interest on the declining balance. How big will the annual payments be?
a. On December 31, Beth Klemkosky bought a yacht for $70,000 and paid $20,000 down, how much does she need to borrow to purchase the yacht?