Answer:
The annual payment is $3,758.72
Explanation:
Amount borrowed = $20,000
Annual Interest Rate = 8%
Number of payments = 8
Let annual payment be $R
$20,000 = $R/1.08^2 + $R/1.08^3 + $R/1.08^4 + $R/1.08^9
$20,000 = (1/1.08) ×[$R/1.08 + $R/1.08^2 + $R/1.08^3 + $R/1.08^8]
$20,000 = (1/1.08)×$R×(1 - (1/1.08)^8) / 0.08
$20,000 = $R×5.32096
$R = $ 3,758.72
Therefore, the annual payment is $3,758.72
