Answer: $7787.99
Step-by-step explanation:
We know that the formula to find the periodic payment on an annuity is given by :-
[tex]P=\dfrac{r(PV)}{1-(1+r)^{-n}}[/tex], where PV is the present value , r is the rate of interest ( in decimal ) and n is the number of payments.
Given : Present value : $36000
Rate of interest = 8%=0.08
Time period = 6 years
Then , the periodic payment will be :-
[tex]P=\dfrac{(0.08)(36000)}{1-(1+0.08)^{-6}}\\\\\Rightarrow\ P=\dfrac{2880}{0.3698}\\\\\Rightarrow\ P=\$7787.99[/tex]
Hence, the payment size is $7787.99.
