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Problem 1: Mr. Bill S.? Preston, Esq., purchased a new house for ?$130,000. He paid ?$25,000 upfront and agreed to pay the rest over the next 25 years in 25 equal annual payments that include principal payments plus 12 percent compound interest on the unpaid balance. What will these equal payments? be?
Problem 2: If Bill agrees to pay the loan over the next 25 years in 25 equal? end-of-year payments plus 12 percent compound interest on the unpaid? balance, what will these equal payments? be?
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