Bill Preston purchased a new home for $80,000. He paid $25,000 upfront and agreed to pay the rest over the next 15 years in 15 equal annual payments that include principal payments plus 8% compound interest on the unpaid balance.

1. Bill Preston purchased a new home for $80,000 and paid $25,000 upfront. How much does he need to borrow to purchase the house?
2. If Bill agrees to pay the loan over the next 1 years in 15 equal end of year payemnts plus 8% compound interest on the unpaid balance, what will these equal payments be?