Mr. Bill S. Preston, Esq., purchased a new house for $140,000. He paid $25,000

upfront and agreed to pay the rest over the next 20 years in 20

equal annual payments that include principal payments plus

14 percent compound interest on the unpaid balance. What will these equal payments be?

a.Mr. Bill S. Preston, Esq., purchased a new house for $140,000

and paid $25,000 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 20 years in

20 equal end-of-year payments plus 14 percent compound interest on the unpaid balance, what will these equal payments be?

(Round to the nearest cent.)