On December 31, Beth Klemkosky bought a yacht for

$90,000.

She paid

$18,000

down and agreed to pay the balance in

11

equal annual installments that include both the principal and

13

percent interest on the declining balance. How big will the annual payments be?

a.On December 31, Beth Klemkosky bought a yacht for

$90,000

and paid

$18,000

down, how much does she need to borrow to purchase the yacht?

$

(Round to the nearest dollar.)