On January $1^{st},$ Kevin bought a house for $$950,000.$ He paid $$250,000$ in cash at the time of the purchase and agreed to pay the balance in five equal annual installments that include both the principal and $9$ percent interest on the declining balance.

Required:

a$)$ Determine the amount of the annual payment.

$950,000-250,000=700,000$

$700,000**9\%=63,000\mathrm{.}00$

$700,\frac{000}{5}=140,000$

$140,000+63,000=203,{000}_{?}$

b$)$ Determine the total dollars of interest that Kevin will pay for this loan. $R$

c$)$ Determine the amount of interest that is included in the first payment. It is no necessary to complete an amortization schedule.