(Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $130,000. He paid $10,000 upfront and agreed to pay the rest over the next 10 years in 10 equal annual payments that include principal payments plus 12 percent compound interest on the unpaid balance.

1. What will these equal payments be?

2. Mr. Bill S. Preston, Esq., purchased a new house for $130,000 and paid $10,000 upfront. How much does he need to borrow to purchase the house?

Round to the Nearest Dollar