The annual payment = $1490.29
Explanation:The loan is the Present Value (PV)
PV = $10000
The annual rate, r = 8%
r = 8/100
r = 0.08
The number of payments, n = 10
The Present Value of annunity is given by the formula:
[tex]PV\text{ = P\lbrack}\frac{1-(1+r)^{-n}}{r}\rbrack[/tex]Substitute PV = 10000, r = 0.08, and n = 10 into the formula above to solve for P
[tex]\begin{gathered} 10000=P\lbrack\frac{1-(1+0.08)^{-10}}{0.08}\rbrack \\ 10000\times0.08=P\lbrack1-(1.08)^{-10}\rbrack \\ 800\text{ = P(1-}0.4632) \\ 800\text{ = }0.5368P \\ P\text{ = }\frac{800}{0.5368} \\ P\text{ = }1490.29 \end{gathered}[/tex]The annual payment = $1490.29
