Mr. Bill S. Preston, Esq., purchased a new house for $120,000. He paid $15,000 upfront and agreed to pay the rest over the next 25 years in 25 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 $15,000 upfront. How much does he need to borrow to purchase the house?

b. If Bll agrees to pay the loan over the next 25 years in 25 equal end-of-year payments plus 9 percent compound interest on the unpaid balance, what will these equal payments be?