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(Loan amortization) On December? 31, Beth Klemkosky bought a yacht for ?$60,000 . She paid ?$18,000 down and agreed to pay the balance in 7 equal annual installments that include both the principal and15 percent interest on the declining balance. How big will the annual payments? be?
a. On December? 31, Beth Klemkosky bought a yacht for ?$60,000 and paid ?$18,000 ?down, how much does she need to borrow to purchase the? yacht? ANSWER $42,000.00
b. If Beth agrees to pay the loan plus 15% compound interest on the unpaid balance over the next 7 years in 7 equal? end-of-year payments, what will those equal payments? be?
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