Answer:
Annual payment rounded will be [tex]A=\$ 2448[/tex]
Step-by-step explanation:
Hi
For this problem, we use the formula of anticipated payment hence, [tex]A=\frac{VP}{\frac{1-(1+i)^{-n}}{i} (1+i)}[/tex], with the known information: [tex]VP=\$ 8600, i=9.4%[/tex] and [tex]n=4[/tex], so we have [tex]A=\frac{8600}{\frac{1-(1+0.094)^{-4}}{0.094} (1+0.094)}=\$2447.8[/tex] after round it to the next dollar, [tex]A=\$ 2448[/tex]
