(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $120,000. He paid $30,000 up front and agreed to pay the rest over the next 15 years in 15 equal annual payments that include principal payments plus 9 percent compound interest on the unpaid balance. What will these equal payments be?

a.Mr. Bill S. Preston, Esq., purchased a new house for $120,000 and paid $30,000 upfront. How much does he need to borrow to purchase the house?

$ _____________(Round to the nearest dollar.)

b.If Bill agrees to pay the loan over the next 15 years in 15 equal end-of-year payments plus 9 percent compound interest on the unpaid balance, what will these equal payments be?

$ _____________ (Round to the nearest dollar.)