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Problem 1: On December 31, Beth Klemkosky bought a yacht for $60,000. She paid $20,000 down and agreed to pay the balance in 9 equal annual installments that include both the principal and 14 percent interest on the declining balance. How big will the annual payments be?
Problem 2: On December 31, Beth Klemkosky bought a yacht for $60,000 and paid $20,000 down, how much does she need to borrow to purchase the yacht?
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