On December 31, Beth Klemkosky bought a yacht for $110,000 .She paid $12,000down and agreed to pay the balance in 5equal annual installments that include both the principal and 7percent interest on the declining balance.How big will the annual payments be?

a. On December 31, Beth Klemkosky bought a yacht for $110,000and paid $12,000down, how much does she need to borrow to purchase the yacht?

b. If Beth agrees to pay the loan plus 7 percent compound interest on the unpaid balance over the next 5 years in 5 equal end-of-year payments, what will those equal payments be?