AB Owes a $100,000, 8%, Five-Year Note Payable Dated January

Essay

AB owes a $100,000, 8%, five-year note payable dated January 1, 2020.It is the end of year 2020, and instead of making the interest payment now due, AB has made arrangements to pay the debt and the 2020 interest payment, in four equal instalments based on the same interest rate.The first payment is to be made on January 1, 2021.The amount of the equal annual payments, rounded to the nearest dollar, is: