(Related to Checkpoint 6.1) (Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for

$120,000.

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

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

$25,000

upfront. How much does he need to borrow to purchase the house?

$nothing

(Round to the nearest dollar.)