Computing annuity payment: Jackson Electricals has borrowed $27,850 from its bank at an annual rate of 8.5 per cent. It plans to repay the loan in eight equal instalments, beginning at the end of next year. What is its annual loan payment? (Round to the nearest dollar.)

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To calculate the annual loan payment, we use the formula for an annuity payment: P = [r*PV] / [1 - (1 + r)^-n], where P is the payment, r is the interest rate per period, PV is the present value of the loan, and n is the number of periods. Plugging in the values: r = 0.085, PV = $27,850, n = 8, we find P ≈ $4,939.

Computing Annuity Payment: Jackson Electricals Has Borrowed $27,850 from Its