Harry Just Bought a New Four-Wheel-Drive Jeep Cherokee for His

Multiple Choice

Harry just bought a new four-wheel-drive Jeep Cherokee for his lumber business. The price of the vehicle was $35,000, of which he made a $5,000 down payment and took out an amortized loan for the rest. His local bank made the loan at 12% interest for five years. He is to pay back the principal and interest in five equal annual installments beginning one year from now. Determine the amount of Harry's annual payment.

A) $8,322
B) $9,600
C) $9,709
D) $6,720