Finance

8. (Related to Checkpoint 6.1) (Loan amortization) On December 31, Beth Klemkosky bought a yacht for $100,000. She paid $16,000 down and agreed to pay the balance in 6 equal annual installments that include both the principal and 7 percent interest on the declining balance. How big will the annual payments be? a. On December 31, Beth Klemkosky bought a yacht for $100,000 and paid $16,000 down, how much does she need to borrow to purchase the yacht? (Round to the nearest dollar.) b. If Beth agrees to pay the loan plus 7 percent compound interest on the unpaid balance over the next 6 years in 6 equal end-of-year payments, what will those equal payments be? (Round to the nearest cent.) $ $