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(Loan amortization). On December 31, Beth Klemkoski bought a yacht for $50,000. She paid $18,000 down and agreed to pay the balance in 10 equal annual installments that include both the principal and 13% interest on the declining balance. How big will the annual payments be?
a. On December 31, Beth Klemkoski bought a yacht for $50,000 and paid $18,000 down, how much does she need to borrow to purchase the yacht?
$______.
b. If Beth agrees to pay the loan plus 13% compound interest on the unpaid balance over the next 10 years and 10 equal end-of-your payments, what will those equal payments be?
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