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

$140,000.

He paid

$25,000

upfront and agreed to pay the rest over the next

30

years in

30

equal annual payments that include principal payments plus

12

percent compound interest on the unpaid balance. What will these equal payments be?

a.Mr. Bill S. Preston, Esq., purchased a new house for

$140,000

and paid

$25,000

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

$nothing

(Round to the nearest dollar.)