How much does she need to borrow to purchase yacht

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Reference no: EM131855765

(Loan amortization). On December 31, Beth Klemkoski bought a yacht for $80,000. She paid $16,000 down and agreed to pay the balance in 6 equal annual installments that include both the principal and 15% interest on the declining balance. How big will the annual payments be?

a. On December 31, Beth Klemkoski bought a yacht for $80,000 and paid $16,000 down, how much does she need to borrow to purchase the yacht?

$______.

b. If Beth agrees to pay the loan plus 15% compound interest on the unpaid balance over the next 6 years in 6 equal end-of-Year payments, what will those equal payments be?

$______.

Reference no: EM131855765

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