(Related to Checkpoint 6.1) (Annuity payments) Mr. Bill S. Preston, Esq., purchased a new house for $100,000. He paid $30,000 upfront and agreed to pay the rest over the next

20 years in 20 equal annual payments that include principal payments plus 13percent compound interest on the unpaid balance. What will these equal payments be?

a.Mr. Bill S. Preston, Esq., purchased a new house for $100,000 and paid $30,000 upfront. How much does he need to borrow to purchase the house? $70,000.00

(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 plus13 percent compound interest on the unpaid balance, what will these equal payments be? _______ (Round to the nearest cent.)